Retail started the year with an unprecedented number of mergers and acquisitions. Brands that changed hands in January include Christian Lacroix, Kapital, Laura Ashley, Stella McCartney, True Religion, Urban Skin RX, Vera Wang, and Vince.

However, the biggest deal so far this year is the merger of JCPenney with the SPARC Group into Catalyst Brands. It has the most significant customer reach and involves the most brands, including Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica. The SPARC Group was originally a joint venture between property owners, Simon Property Group and Brookfield, with Authentic Brands Group and Shein.

Post-Election Surge

Pitchbook reports that historically, in election years, M&As are delayed till after the election to “navigate election uncertainties.” Apparently, those uncertainties were quashed by President Trump’s decisive win of the popular and electoral college vote.

Immediately after the election, a survey of some 300 members of the Association of Certified Professional Accountants found 67% have a confident outlook for the year ahead, up from just 26% in August, as reported by Bloomberg.

Those results were validated in another survey by Duke University’s Fuqua School of Business and the Federal Research Banks of Atlanta and Richmond. Some 500 CFOs surveyed expressed a more favorable outlook on the broader economy, as well as their company’s prospects.

The so-called “Trump Bump” is growing an appetite for more mergers and acquisitions in 2025. A post-election EY-Parthenon survey of 1,200 CEOs globally found 56% expect to actively pursue M&As in 2025, compared with only 37% in September before the election.

Retail brands in the fashion, home and beauty industries are ripe for the taking. “There seems to be increased appetite for doing retail deals, especially in the U.S.,” said GlobalData’s Neil Saunders.

“I think this is a function of it being something of a buyers’ market and there being a lot of distressed or challenged brands out there which are ripe for turnarounds or corporate restructuring. Basically, there is money to be made.”

Year-To-Date Retail Deal Roundup

Before getting into the details of the JC Penney-SPARC Group formation of Catalyst Brands, here’s a run down of the retail deals struck so far this year. All financial terms are undisclosed:

• Christian Lacroix to Sociedad Textil Lonia from Falic Group – With an aim to restore the designer brand back to former greatness – it was once owned by LVMH – the Spanish fashion and textile company STL also owns the Purificación García and CH Carolina Herrera brands and operates more than 600 stores in 43 countries. It is 75% family-owned owned with the Puig beauty group owning a minority share.
• Kapital to L Catterton – A majority share of the popular Japanese denim and casual fashion company has been acquired by LVMH-backed L Catterton, which has $34 billion equity capital under management. Its holdings include Boll & Branch, Birkenstock and Etro.
• Laura Ashley to Marquee Brands from Gordon Brothers – The iconic British lifestyle brand Laura Ashley, known for its floral patterns, was added to Marquee Brands’ $4 billion holdings, including Martha Stewart, Sur La Table, Emeril Lagasse, BCBGMaxazria and Bruno Magli. Laura Ashely has licensing partnerships with over 100 companies and produces products in 200 categories sold in over 150 retail locations. Of note: late last year, Gordon Brothers stepped in to save some 400 Big Lots stores after it filed for bankruptcy.  
• Stella McCartney from LVMH – Five years after LVMH acquired a minority stake in the sustainable Stella McCartney fashion brand, the company has bought back LVMH’s share. However, Stella parts on good terms with LVMH as she will continue to advise CEO Bernard Arnault and the LVMH executive team on environmental and sustainability issues.
• True Religion to Acon investments with strategic partner SB360 Capital – The casual fashion brand and omni-channel retailer with 51 stores, e-commerce site and numerous wholesale partnerships, joins Acon, which also owns Spencer Gifts, Funko and Spirit Halloween. True Religion’s CEO Michael Buckley will remain with the brand and is a minority shareholder. The aim is to grow True Religion into a billion-dollar brand. CNBC reported it generated $280 million in 2023.
• Urban Skin RX to American Exchange Group –  The clinical skincare brand specializing in treatments for hyperpigmentation and uneven skin tones has been added to the portfolio of American Exchange Group, which includes NatureWell, Txtur, Found Active and Indie Lee in clean beauty, along with fashion and accessories brands Aerosoles, Alexis Bendel, Born Footwear, Ed Hardy, Jones New York, Rocawear, among others.   
• Vera Wang to WHP Global – Vera Wang will continue in the role of chief creative officer for her fashion empire, including bridal fashions, ready-to-wear, fragrances, jewelry, fashion accessories and home. With sales of $700 million, Vera Wang brand joins WHP Global’s portfolio that generates over $7 billion in global retail sales with Rag & Bone, Joe’s Jeans, Express, Bonobos, Anne Klein, Isaac Mizrahi, among others.
• Vince Holdings to P180 from SunCapital –  Vince and its 47 full-priced stores, plus 14 outlets and e-commerce site, will become part of P180, a recently formed group aimed at the luxury fashion market. P180 has holdings in Altuzarra and multi-brand retailer Elysewalker. P180 co-founder Brendan Hoffman is expected to resume the role of Vince CEO, a position he held from 2015 to 2020, before moving to Wolverine.

JCPenney And SPARC Group Form Catalyst Brands

Back in 2020, JCPenney was acquired by Simon and Brookfield for $1.75 billion. Side-by-side, the property-owner pair had been bolstering their holdings in other national but troubled retailers, including Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica under SPARC Group.

Now it is bringing these major iconic brands together along with JCP’s private labels Stafford, Arizona and Liz Claiborne, under Catalyst Brands. Shein is also a shareholder in Catalyst.

It’s a mega-move representing over $9 billion in revenues, 1,800 stores, 60,000 employees and a reported $1 billion in liquidity. Catalyst will be headquartered in JCP’s Plano, TX offices and maintain offices in New York, Los Angeles and Seattle.

Executive Team

Current JCPenney CEO Marc Rosen, who’s credited with stabilizing if not growing JCP’s business, will be promoted to CEO over Catalyst with JCP’s merchandising and supply chain officer Michelle Wlazlo taking over as JCP Brand CEO.

Kevin Harper, formerly with Walmart, will become Catalyst’s chief operating officer and Marisa Thalberg, a member of Forbes CMO Hall of Fame in recognition of her work with Taco Bell, Lowe’s and SeaWorld, will become chief customer and marketing officer at Catalyst.

Natalie Levy will continue as Brand CEO of Aéropostale, Lucky Brand and Nautica and Ken Ohashi will remain as Brand CEO for Brooks Brothers and become Brand CEO for Eddie Bauer as well.

Innovation Promised

“The world ‘catalyst’ reflects our drive to accelerate innovation and energy and amplify the impact of this powerhouse portfolio,” Rosen said in a statement. He brings a wide range of experiences to the Catalyst venture, having been CEO of JCP from 2021 and before that with Levi’s for 7-plus years and 14 years with Walmart. In his work with Levi’s and Walmart, he got deep experience in e-commerce, which he will no doubt dip into as he moves Catalyst forward.

The appointment of marketing super-star Thalberg to the executive team reinforces Rosen’s promise to engage its customers in the Catalyst journey.

“Our relations with more than 60 million customers and the deep data we have create a compelling customer value proposition across our brands. We can design a more personalized shopping experience, offer unified loyalty and credit card programs and ultimately, cross-sell more effectively,” he said adding, “With a clean balance sheet, we’re in a great position to move forward.”

More To Come

According to Harvard Law School Forum on Corporate Governance, 2025 is going to be a turning point for mergers and acquisitions activity with the return of President Trump to the White House and Republican majorities in the House and Senate. It will mean “a more business-friendly, deregulatory approach to policymaking, and further solidifies widespread expectations among market participants that M&A activity will increase in 2025.”

Other retail deals may be coming soon. Bankrupt Party City has accepted a “stalking horse” agreement from Ad Populum Unit, part of New Amscan PC, to buy “substantially all of its intellectual property and related wholesale operating intangible assets.”

Bankrupt Joann hobby stores waits in the wings for a buyer with fellow Forbes.com contributor Mark Faithful reporting Gordon Brothers could be a stalking horse bidder. And British retailer WH Smith just announced it is exploring selling off its 520 “high street” stores, which specialize in newspapers, books and stationery, to focus on its travel store business.

Retailers looking to grow bigger by acquiring a brand, being acquired or merging with another player, better polish up their balance sheets because GlobalData’s Saunders stresses deals aren’t going to be made at “any old price.”

He concluded, “There is a laser like focus on profitability, pathways to profitability and returns. Capital is more expensive and investors and buyers need that capital to work for them. This means there is more discernment over what deals are done and valuations.”