Gap’s strategic vision for late 2025 and beyond is centered on significant diversification into beauty and personal care, alongside a renewed commitment to sustainability-driven product innovation and enhanced omnichannel customer experiences. Gap’s “Better in Denim” campaign, which ran from June 15th to September 4th, 2025, achieved unprecedented digital engagement and a significant brand lift, particularly among younger demographics. This music-driven initiative, starring global girl group KATSEYE, generated billions of impressions and hundreds of millions of views, directly contributing to a 4% year-over-year increase in comparable sales for the Gap brand. This marketing strategy aims to capitalize on new market opportunities while reinforcing core brand strengths and driving long-term value.
10 Best Selling Gap Products in 2025
| Rank | Product Name | Reviews (K) |
|---|---|---|
| 1 | Organic Cotton VintageSoft T-Shirt | 6.4 |
| 2 | Organic Cotton VintageSoft V-Neck T-Shirt | 4.3 |
| 3 | High Rise VintageSoft Relaxed Joggers | 3.4 |
| 4 | Modern Crewneck T-Shirt | 3.3 |
| 5 | VintageSoft Arch Logo Hoodie | 3.3 |
| 6 | VintageSoft Hoodie | 3.2 |
| 7 | Mid Rise ’90s Loose Jeans | 3.1 |
| 8 | High Rise ’70s Flare Jeans | 3.0 |
| 9 | Kids GapFit Tech Joggers | 2.8 |
| 10 | High Rise Vintage Slim Jeans | 2.6 |
Product Development and Beauty Industry Plans
For late 2025, Gap Inc. is launching a major expansion into beauty and personal care, beginning with a pilot in 150 Old Navy stores. This initiative aims to capture a share of the $100 billion U.S. beauty market, targeting Gen Z and millennial shoppers with affordable, curated offerings, mostly under $25. The beauty assortment will focus on premium-positioned products aligned with sustainability trends, featuring dedicated sections in select stores to drive recurring purchases and increase dwell time.
The product strategy also emphasizes data-driven personalization and cross-category synergy. Gap plans to integrate beauty sales with AI-powered shopping experiences, linking skincare and beauty recommendations to apparel purchases to deepen engagement and increase basket size. While expanding into beauty, Gap is careful to avoid diluting its core apparel legacy, focusing on cross-promotions that integrate new lines without diminishing core retail strengths. Significant operational investments include advancing inventory management, digital product creation, and AI-enabled tools to enhance both customer experience and internal efficiency.
Prioritized Beauty Product Categories and Mix
Old Navy’s pilot program will feature a comprehensive product mix across key beauty categories, strategically positioned to attract its established customer base. The categories and their expected product mix include:
- Skincare: This category will likely include foundational items such as cleansers, moisturizers, and possibly serums, focusing on accessible solutions for everyday use.
- Makeup: The makeup selection is expected to cover basic essentials, potentially including lip products, mascaras, and foundational items suitable for a mass-market audience.
- Hair Products: Offerings in hair care could range from shampoos and conditioners to styling aids, catering to common hair needs.
- Nail Polish: A variety of nail polishes will be included, offering different colors and finishes to complement seasonal apparel.
- Fragrance: Simple, accessible fragrance options will also be part of the initial product mix, providing a complete personal care offering.
Strategic Partnerships and Collaborations
A key strategic partnership for late 2025 and 2026 is Gap Inc.’s collaboration with Syre for textile-to-textile recycling. Announced in June 2025, Gap Inc. committed to integrating up to 10,000 metric tons per year of Syre’s recycled polyester chip across its brands, including Old Navy, Gap, Banana Republic, and Athleta. This partnership is set to accelerate the adoption of circular polyester, with Syre’s first U.S. facility expected to be operational and supplying recycled materials by 2026. This initiative underscores Gap’s commitment to sustainability leadership and reshaping its supply chain.
In addition to this, the strategic expansion into beauty and accessories involves internal collaborations to “seed to scale” the Old Navy beauty business in 2025. By 2026, Gap Inc. plans to launch “brand-right” beauty and accessories offerings across its entire brand portfolio, including Gap, Banana Republic, and Athleta. This expansion leverages beauty’s higher margins and potential for recurring revenue, further enhanced by AI-driven personalized shopping experiences to boost cross-category engagement.
International Market Expansion
Gap Inc.’s international expansion strategy for late 2025 and beyond is primarily focused on diversifying into global beauty and accessories markets, starting with the U.S. and then phased rollouts internationally. The initial U.S.-led beauty rollout is designed with global scalability in mind, leveraging Gap’s substantial multi-country retail footprint of over 3,500 stores across 35+ countries. By 2026, the company plans to broaden beauty offerings across other brands and markets, indicating a future global expansion trajectory.
The strategy prioritizes an integrated omnichannel approach, with 150 Old Navy stores serving as initial beauty shop-in-shops, and successful concepts expanding both online and in other physical locations globally. This allows Gap to swiftly scale where demand materializes. The beauty initiative aims to meet 70% of customer demand for affordable, simple, and accessible products, cross-selling to its established apparel customer base in key international and U.S. markets.
- June 2025: Gap Inc. announced as a strategic launch partner with Syre for textile-to-textile recycling.
- Late 2025: Gap Inc. begins piloting beauty and personal care products in 150 Old Navy stores.
- 2026: Syre’s first U.S. facility for recycled polyester is expected to be operational.
- 2026: Gap Inc. plans to launch “brand-right” beauty and accessories across Gap, Banana Republic, and Athleta.
- Late 2025 and Beyond: Phased international rollout of beauty offerings across other brands and markets.
Future Outlook
Gap’s strategy for late 2025 and beyond is characterized by a bold pivot towards diversified growth through beauty and personal care, initially piloting in 150 Old Navy stores and expanding across all brands by 2026. This new category focuses on affordable, curated, and sustainable products designed for Gen Z and millennial consumers. The brand’s international expansion will leverage its existing global footprint for a phased rollout of these new offerings, supported by AI-driven personalization and omnichannel integration to enhance customer engagement and sales across all markets.
