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A MACY’S investor has published strategy ideas in a bid to push the department store towards growth.
The chain is preparing to close dozens of stores across the country.
But the corporate investor said it knows how to turn things around.
STRATEGY
Barington Capital Group is a corporation that invests in a variety of brands. It has acquired an undisclosed stake in Macy’s, according to AP, which called the group “activist investors.”
Jim Mitarotonda, Barington Capital Group’s CEO spoke to FOX Business about his ideas.
Firstly, he said the company needs to spruce up its offerings.
“If the product is not exciting, [customers are] not going to go to the store or even go on a Macy’s website,” he said. “It’s just not going to happen.”
He also said the company should separate its retail business from its real estate holdings.
This, he suggested, would help investors see more transparently what money is spent on and earned through.
Such transparency can inform further investment decisions and potentially bring in more money.
He said this would not damage the retail business, but instead would “make them even better.”
He also said the company should spin off its luxury brands, Bloomingdale’s and Bluemercury.
He suggested allowing the two to trade separately could help improve the bottom line.
Along with another private equity group, Barington released a statement in early December outlining more ways the business could be improved.
The document says the investors do not think the company’s new strategic plan fully reflects “upside potential.”
CLOSING SHOP
Despite Mitarotonda’s optimism, turning around Macy’s could be a difficult process.
The iconic American retailer, like many of its competitors, has been facing decline for years.
The company recently confirmed that at least 66 locations would close in 2025.
Some other major department stores have faced similar declines.
JCPenney is closing some of its stores, for example.
At Sears, things are even worse. That once-ubiquitous retailer has only a few locations remaining.
Some of those final spots are shutting as well.
