Activist investors Barington Capital Group and Thor Equities are pressuring Macy’s to form a dedicated real estate division, cut costs, and separate Bloomingdale’s and Bluemercury. Their goal is to enhance value for shareholders.
These investors place Macy’s real estate assets, including its stores and distribution hubs, at a potential value of around $9 billion. They propose reducing capital expenditures to 1.5%-2% of sales, alongside initiating a $3 billion stock repurchase over a span of three years.
Their demands emerge as Macy’s contends with a diminishing market value, despite initiatives spearheaded by the new CEO, Tony Spring, to pivot the company’s trajectory. Macy’s, Inc. has reiterated its dedication to achieving sustainable and profitable growth, assuring its readiness to consider strategic evaluations and explore fresh avenues for value realization.