The Wall Street Journal reported that Gap plans to expand into the personal care and beauty sector.
This move represents a major shift in the company’s strategy, as they look beyond their traditional clothing base and tap into one retail sector that is thriving.
WSJ reported that Gap Old Navy will expand its beauty offerings in all of their stores starting this fall. This includes products sold under the Old Navy Label.
Most items will be priced below $25 and include skin care products, nail polishes, cosmetics, haircare, etc.
Richard Dickson, CEO of Richard Dickson Corporation, has a new strategy.
Richard Dickson will be the CEO of Mattel in 2023, and he has a plan that will take a different direction.
Dickson stated that Gap must stabilize its apparel business in order to grow into adjacent categories.
The company has seen sales improve across all divisions and is now focusing on beauty products and accessories.
Dickson stated in an interview that “we have credibility with the consumers to begin to venture into category adjacent to our core.”
Next year, Gap stores will start selling fragrances and beauty products.
Gap is joining brands such as Chanel and Kohl’s to tap into the beauty boom
Gap may be a latecomer to the beauty boom, but many of its peers are already on board.
Cosmetics and personal products are now available from luxury brands like Chanel, Louis Vuitton and Abercrombie & Fitch, and mall-based retailers such as Urban Outfitters and Abercrombie & Fitch.
The mass retailers also made a significant investment. Kohl’s has Sephora stores in their store, and Target’s partnership with Ulta beauty initially attracted attention. However, the two companies decided to end the collaboration.
Dickson, who has worked in this sector for many years, is the driving force behind Gap’s push.
He began his career as a buyer for Bloomingdale’s. In 2000, Estee Lauder acquired Gloss.
Beauty range to include Old-Navy, TonyMoly, and E.l.f.
Around 150 Old Navy outlets will add a larger variety of beauty products to their checkout lanes, and about 45 will have specialized beauty shops staffed with advisers.
Old Navy body lotions, washes and mists will be available alongside other brands like Mario Badescu and E.l.f. as well as Korean names such TonyMoly, Mixik and Mario Badescu.
Old Navy sells a few beauty products, like Burt’s Bees Lip Balm. However, the $8.4 Billion in sales is largely attributed to Old Navy.
According to a company survey, 70% of Old Navy’s customers expressed interest in purchasing beauty products.
Why embark on a journey of beauty?
Beauty is a profitable category, with higher margins than clothing and an enduring demand among younger consumers.
Euromonitor predicts that the US personal and beauty care market will reach $129 billion by 2025. This is an increase of nearly 4% over last year.
Gap’s pivot highlights its efforts to seize that growth, while diversifying outside of clothing. It seeks to establish itself as an important player in US retail.
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