Activist Investors Push Macy’s to Restructure Real Estate and Cut Spending

Barington Capital and Thor Equities propose creating a real estate subsidiary, reducing capital expenditures, and exploring strategic options for luxury brands.

Barington Capital Group and Thor Equities have called on Macy's to create a separate real estate subsidiary to monetize its property portfolio, valued at $5-$9 billion.
The activist investors propose reducing Macy's capital expenditures to 1.5%-2% of total sales and repurchasing $2-$3 billion in stock over the next three years.
They suggest exploring strategic alternatives for Bloomingdale’s and Bluemercury, citing their higher growth potential compared to Macy's core operations.
Macy's management expressed confidence in its ongoing 'Bold New Chapter' strategy, which includes closing underperforming stores and investing in top-performing locations.
The investors aim to join Macy's board, arguing their proposals could significantly boost shareholder returns, despite skepticism about the long-term impact of such measures.