A
ctivist investor Barington Capital is pushing Macy's to focus on its real estate assets, according to a report by The Wall Street Journal. The firm wants the department store chain to create a separate real estate unit within the company to boost its stock value.

    Barington confirmed it has a stake in Macy's and was joined in its investment by property owner Thor Equities. They believe Macy's shares are undervalued, citing the company's real estate as worth between $5 billion and $9 billion, more than the market value of the company itself.

    The investors are also urging Macy's to consider spinning off its luxury brands, Bloomingdale's and Bluemercury, which they think could trade higher on their own. Additionally, they want the company to reduce capital expenditures to 1.5-2% of total sales and buy back $2-3 billion in stock over three years.

    These changes could potentially boost Macy's shares by up to 200% over the next three years. The company's stock has declined significantly over the last decade, from a high of $70 in 2015 to its current price of around $16.43.

    Macy's had previously announced plans to close 150 stores by 2027 and focus on its remaining locations, using digital communications to retain customers. However, activist investors are pushing for more drastic measures to revitalize the company's stock value.