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ctivist investor Barington Capital has taken a stake in Macy's, pushing the retailer to consider strategic options for its high-end Bloomingdale's and Bluemercury businesses. The firm also wants Macy's to create a separate real estate unit within the company, which it estimates could be worth between $5 billion and $9 billion.

    Macy's shares jumped 4% on Monday after Barington Capital disclosed its stake in the retailer. The exact size of Barington's hold is unclear, but the firm partnered with real estate firm Thor Equities to make the investment.

    Barington and Thor are urging Macy's to pursue strategic expansion paths for Bloomingdale's and Bluemercury, which they believe could trade at a higher multiple on their own. They also want the company to reduce capital expenditures to between 1.5% and 2% of total sales, down from around 4% currently.

    The firms are also asking Macy's to repurchase a minimum of $2 billion to $3 billion in stock over the next three years and add Barington and Thor representatives to its boards. They estimate that operating improvements at Macy's, coupled with their recommendations for aggressive share repurchases and structural changes, could lead to a 150% to 200% total return for shareholders over the next three years.

    Macy's has faced several activist investors in recent years, including Jana Partners and Starboard Value, which have pushed the company to spin off its real estate assets or create separate e-commerce businesses. The retailer has also been working to turn around its sales under new CEO Tony Spring, who has a "Bold New Chapter" plan that includes closing underperforming locations and revamping existing stores.

    Barington and Thor said they see early promise in Spring's plan but called for further cost-cutting measures. They suggested that Macy's take notes from Dillard's, which has paid out 60% of its total cash sources to shareholders compared to Macy's 25%.