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US Retail Group Catalyst Brands to Expand India Global Center, Executive Says

Catalyst Brands is accelerating its India expansion by scaling its Bengaluru global capability centre to 1,000 employees as it shifts more digital, AI and customer operations work to the country.

Catalyst Brands Vice President and Managing Director Nihar Nidhi poses for a photograph during the Reuters Summit in Bengaluru, India, May 18, 2026. REUTERS/Priyanshu Singh

Key Insights

  • Bengaluru is emerging as a strategic innovation hub for Catalyst Brands, leading key initiatives.
  • The retailer is consolidating global customer support operations in Bengaluru and moving work from South America to India, while using AI-driven productivity gains to redeploy staff into higher-value roles instead of reducing hiring.
  • The Bengaluru centre will grow from about 650 employees at the start of 2026 to roughly 1,000 by year-end, with India taking on a larger share of global operations.

BENGALURU, May 18 (Reuters) – Catalyst Brands plans to increase headcount at its Bengaluru global capability centre to about 1,000 by the end of the year, India Managing Director Nihar Nidhi said on Monday, as the Aeropostale owner taps into the country’s deep talent pool to handle key business functions including digital initiatives.

Nidhi told Reuters that the center’s headcount is set to rise from about 650 at the start of the year, reflecting a higher share of global work being moved to India rather than an overall increase in the company’s workforce.

For Catalyst Brands, India’s appeal as a GCC hub lies in a maturing talent ecosystem that can deliver on domain and technology expertise.

The company, formed by the merger of U.S. department store chain J.C. Penney and Sparc Group in 2025, also owns Brooks Brothers, Nautica and Lucky Brand.

Bengaluru is taking on expanded responsibilities across digital operations, creative services and core business functions such as planning and allocation, while also emerging as a key hub for piloting AI-led initiatives including automated product descriptions, Nidhi said.

He added that productivity gains from AI are being used to redeploy employees to higher-value work rather than reduce hiring, as the retail sector remains in the early stages of adoption. 

While Nidhi did not disclose specific investment figures, he said the scale and quality of AI use cases emerging from Bengaluru are raising expectations that “Bangalore will lead the agenda” in the future, backed by continued investment in talent and capabilities.

Catalyst Brands is bringing customer support operations in-house and moving more work from South America to Bengaluru, where it is consolidating global customer care and hiring aggressively, Nidhi said, adding the transition will largely be completed over the next two quarters.

(Reporting by Chandini Monnappa and Savyata Mishra in Bengaluru; Editing by Anil D’Silva)

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