Macy's activist investors want the retailer to make significant changes

Published On Dec 10, 2024, 4:33 PM

Macy's is under pressure from activist investors Barington Capital Group and Thor Equities to make several significant changes. They argue for a revised capital allocation strategy and recommend creating a separate real estate subsidiary to optimize profit from store locations. The investors believe that implementing these changes, alongside aggressive share repurchase plans, could yield a total return of 150% to 200% for shareholders over the next three years. Despite a decline of over 18% in Macy's stock price over the past year, the investors express optimism about the company's existing plans to close underperforming stores while expanding its upscale brand offerings. Macy's, acknowledging the need for improvements, has committed to driving shareholder value and is open to further discussions with the investors.