What: JCPenney is experiencing a resurgence, returning to profitability and increasing customer traffic as it enters the 2025 holiday season.

Why it is important: JCPenney is holding prices flat on key holiday products and leveraging exclusive brands to attract value-driven shoppers amid economic uncertainty. This development demonstrates how department stores can adapt to economic pressures by focusing on value, exclusive offerings, and customer engagement.

JCPenney is entering the 2025 holiday season with renewed momentum, marked by a return to profitability and a steady increase in customer visits over the past fifteen months. The retailer’s strategy centers on holding prices flat for key holiday products, a move designed to address consumer concerns about inflation and economic uncertainty. Exclusive collections, such as the iHeartRadio Jingle Ball x JCPenney line and expanded offerings from brands like Ashley Graham and Rebecca Minkoff, are positioned to attract a broad demographic seeking both value and novelty. The company’s holiday campaign emphasises compelling promotions, daily deals, and a diverse assortment of apparel, home goods, beauty, and toys, aiming to maintain strong engagement throughout the season. Operational improvements and the recent formation of Catalyst Brands have enabled JCPenney to leverage efficiencies and enhance its market position, even as overall sales remain slightly down year-over-year. By prioritising value and customer experience, JCPenney is demonstrating resilience and adaptability in a challenging retail environment.

IADS Notes: JCPenney’s resurgence and profitability in Q2 2025, achieved through cost controls and operational synergies under Catalyst Brands, align with broader industry trends of disciplined management and strategic partnerships (Retail Dive, October 2025; WWD, December 2024). The company’s decision to hold prices flat on key products amid economic pressures reflects a keen understanding of consumer sentiment (Forbes, September 2025; PwC, September 2025), while the merger with SPARC Group in January 2025 has provided the scale and resources necessary for sustainable growth (The Robin Report, January 2025; WWD, January 2025). These strategies position JCPenney to capitalise on shifting consumer behaviors and reinforce its relevance in the evolving retail landscape.

JCPenney sees momentum entering holiday season