Throughout 2015—as sales continued to drop—Macy's explored ways it could leverage its vast real estate to turn business around.
With poor holiday sales figures in, activist investor Starboard Value is urging Macy's to go the JV route, citing the success of Saks Fifth Avenue's JVs with Simon Property Group and RioCan, GlobeSt reports.
In a letter to Macy's CEO Terry Lundgren, Starboard CEO Jeffrey Smith says JV structures are the smartest next step, "given the wide discrepancy between the value of the real estate and the current enterprise value."
While Macy’s turned down previous investor overtures to spin off its assets into REITs, the retailer could end up going through with the JV.
A Macy’s spokesman told GlobeSt that Starboard’s proposal is in line with actions Macy’s has already taken to explore JVs. [GS]
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