Activist Investors Push for Big Changes at Macy’s
Macy’s is again under pressure from investors to make major changes. Barrington Capital and Thor Equities want the department store chain to cut spending, sell its luxury brands, and rethink how it uses its real estate.
This isn’t the first time Macy’s has been targeted by activist investors—it’s actually the fourth time in the last ten years.
What Do the Investors Want?
- Spend Less: They believe Macy’s has spent too much—nearly $10 billion—on projects instead of focusing on buybacks or dividends.
- Sell Luxury Brands: They think Bloomingdale’s and Bluemercury could be sold for a big payday.
- Use Real Estate Wisely: Macy’s owns a lot of valuable real estate. Barrington suggests creating a separate company to manage it, which could rent it back to Macy’s while finding ways to make more money from those properties.
How Is Macy’s Doing?
Macy’s has been struggling. Sales have dropped, and the company has been closing stores—around 150 by 2027.
The plan is to focus on the remaining stores and invest in their stronger brands, like Bloomingdale’s and Bluemercury.
Macy’s has also been dealing with a financial issue. It found out an employee had hidden $154 million in delivery expenses for nearly three years.
The company is still investigating and plans to share more updates soon.
Why It Matters
Selling off some real estate or brands could give Macy’s the cash it needs to improve its business.
But so far, Macy’s says it’s confident in its current plan to focus on stronger stores and brands.
For now, all eyes are on Macy’s as it decides how to handle the pressure from these investors and its ongoing challenges.