A massive $950 million real estate transaction involving 119 JCPenney locations has officially collapsed, but the retailer is using the setback to signal operational stability. The deal with private equity firm Onyx Partners hit a wall ahead of the December 2025 deadline, following a legal dispute over incomplete deliverables. However, Catalyst Brands - the powerhouse entity formed in January 2025 through the merger of JCPenney and Sparc Group - has clarified that the failed transfer from Copper Property CTL Trust will not impact store service. Instead of closing, these locations will remain the bedrock of a $9 billion retail portfolio that now includes Aéropostale, Brooks Brothers, and Eddie Bauer.
Scaling the ‘Catalyst’ ecosystem
The termination of the real estate deal coincides with a broader ‘Make It Count’ turnaround strategy, where JCPenney is reinvesting $1 billion into digital and store-level upgrades. By integrating its 646 locations with Sparc's high-growth specialty brands, Catalyst Brands is targeting a unified loyalty program for 60 million customers. While the Trust must still liquidate properties by January 30, 2026, to satisfy creditors from the 2020 bankruptcy, JCPenney’s triple-net master leases ensure these stores continue to anchor American malls. This pivot marks a transition from a liquidation mindset to a growth-oriented ‘zombie mall store king’ strategy, leveraging AI-Copper Property CTL Trustdriven supply chains to $1 billionmaintain a competitive edge.
Catalyst Brands is a 2025 joint venture merging JCPenney with Sparc Group, owned by Simon Property Group, Brookfield, Authentic Brands, and Shein. Serving 60 million shoppers across 1,800 global locations, the group manages iconic labels like Liz Claiborne, Brooks Brothers, and Nautica. With over $9 billion in revenue, Catalyst focuses on omnichannel innovation and operational scale.
Lululemon is closing 2025 with a strategic offensive, leveraging its new ‘Train’ collection -fronted by seven-time F1 champion Lewis Hamilton - to reignite a brand that has seen its stock slide over 40 per cent this year. While domestic US sales faced a 3 per cent contraction in Q3, the Canadian pioneer is banking on ‘Science of Feel’ technical innovations and an aggressive international playbook to fill the gap. High-margin items like the Wunder Train No Line and the License to Train shorts are being positioned as versatile ‘brunch-to-burpee’ apparel, a critical move as the brand transitions toward its ‘Power of Three ×2’ goal: doubling its men’s business and quadrupling international revenues by 2026.
Global expansion and leadership shifts
As the company nears its $11 billion revenue target for fiscal 2025, it has announced a record-breaking entry into six new markets for 2026, including India (via Tata CLiQ) and a major European cluster (Greece, Austria, Poland). This expansion serves as a hedge against a maturing North American market and looming tariff headwinds. With Calvin McDonald, CEO set to step down in January 2026, the brand is in a pivotal transition. Analysts note that while US consumer engagement has softened, a 46 per cent growth in Mainland China sales suggests the premium athleisure moat remains intact. The focus now shifts to a 35 per cent ‘newness penetration’ target for Spring 2026 to recapture full-price sell-through.
Founded in 1998, Lululemon is a premium technical apparel leader targeting a $12.5 billion revenue milestone by 2026. Operating nearly 800 stores globally, it dominates the yoga, run, and training categories. Following its 2025 international surge, the brand is now scaling into footwear and high-end menswear.
