Old Navy’s on a tear and management’s not taking its foot off the gas.
The San Francisco-based retailer, part of Gap Inc., revealed details on Thursday of its Old Navy Beauty Co. brand launch. It comes just a few days after the release of its first-ever collaboration designer with Anna Sui. Old Navy Beauty Co. spans body, skin and hair products and is expected to roll out in the fall to a limited number of stores before launching at all Old Navy stores next summer.
The company first announced the beauty news in September with the turnaround of Gap Inc.’s largest brand behind it as it now seeks growth.
Entering the fast-growing beauty segment, long seen as recession proof, is a big move. The U.S. beauty and personal care market is expected to grow at an annual rate of nearly 3 percent to generate 2025 sales of $104.7 billion, according to Statista. That equates to about $305 spent per person in the U.S. on products in the segment.
Old Navy Beauty Details
Old Navy Beauty Co. will first enter 150 stores nationally. Most, 100 doors, will sell the new product line in sections near the cash registers. Fifty Old Navy stores will have shop-in-shops with their own beauty staff.
The new line includes hair and body mist, lotion and body wash. Retail pricing ranges from $7.99 to $16.99 across mini, regular and jumbo sizes for every product.
Deb Redmond, Gap Inc. head of beauty, said the company expects the fall rollout to be a “test-and-learn phase” with the aim to “understand what our customers want most.”
The beauty line will come to the rest of Old Navy’s stores by the summer.
The company also said the assortment for beauty will eventually be expanded to include makeup and nail products.
Old Navy Offense
The details on the beauty line follow Tuesday’s launch of Old Navy’s first-ever designer collaboration, which was done with Anna Sui.
It’s just the latest in a long list of buzz-worthy news for the retailer, including its scaled handbag collection that offers a trendier and stylish assortment than what has previously been part of the past mix.
Just two years ago, Gap Inc. was playing defense on a business in need of revival. It’s turned the page on that for its two largest revenue drivers in Old Navy and Gap.
Last fiscal year, Old Navy annual sales were $8.4 billion, which was up 2.4 percent from 2023. Old Navy accounted for over half of parent Gap Inc.’s overall sales of $15.1 billion in fiscal year 2024, which was up 1 percent from 2023.
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