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ctivist investor Barington Capital Group is pushing Macy's to create a separate real estate subsidiary, reduce capital expenditures, and explore strategic options for its Bloomingdale's and Bluemercury chains. In a presentation to shareholders, Barington said Macy's shares are undervalued, with the company's real estate worth between $5 billion and $9 billion. The investor group has partnered with property owner Thor Equities and claims that creating a separate real estate unit could generate significant revenue.

    Barington is also urging Macy's to cut capital expenditures from 4% of total sales to 1.5-2%, and repurchase at least $2 billion in stock over the next three years. This, they say, could lead to a 150-200% return for shareholders. The proposals come as Macy's struggles with sluggish sales and increased competition from online retailers like Amazon.

    Macy's shares fell 4% on Monday after Barington's presentation, and have fallen 12% so far this year. The company is expected to report its fiscal third quarter earnings on Wednesday, following the discovery of an employee intentionally hiding up to $154 million in expenses over several years.

    Barington cited Dillard's as an example of a retailer that has successfully cut expenses and delivered strong returns to shareholders. Macy's CEO Tony Spring has already announced plans to close 150 stores and upgrade others, but Barington is urging the company to take further action.

    Macy's said in a statement that its board and management team are committed to delivering sustainable growth and driving shareholder value. The company remains confident in its new strategy and expects to share full details of its progress on Wednesday.