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December 10, 2024

Activist investors urge Macy's to create a real estate unit

  • Barington Capital Group says that Macy’s real estate, including its flagship at Herald Square, is worth between $5 billion and $9 billion.
    • By ANNE D’INNOCENZIO
    AP Retail Writer

    NEW YORK — Activist investor Barington Capital Group is calling on department store retailer Macy's to develop an internal real estate subsidiary, reduce capital expenditures, and explore strategic options for its Bloomingdale's and Bluemercury chains among other changes to boost its slumping stock, according to its proposal made public Monday.

    The presentation to Macy's shareholders comes after Barington Capital, which has stakes in such brands as Victoria's Secret, Hanes and Dillard's, has built an undisclosed stake in Macy's. Barington said it has partnered with property owner Thor Equities. They said that Macy's shares are undervalued, and its real estate, including its Macy's flagship at Herald Square, is worth between $5 billion and $9 billion. They believe Macy's should create a separate real estate unit to collect market rents from Macy's retail operations and pursue other asset sale and redevelopment opportunities.


     
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