Report: Investor Group Eyes Macy's Takeover
Could Macy’s have a new owner in 2024?
That question will be answered in the coming weeks following the offer to purchase the venerable department store retailer from Arkhouse Management and Brigade Capital Management. As reported in the Wall Street Journal, a proposal to buy the retailer was made on December 1 at a price of $21 per share, or $5.8 billion.
The investor group reportedly has a large stake in Macy’s through Arkhouse-managed funds. The report indicated the retailer’s board of directors met to discuss the offer, but no additional information was immediately available.
News of a possible takeover comes as the retailer operates during the holiday season and looks to close out a busy year. This included the naming of its new president and CEO Tony Spring, who will officially take over for the retiring Jeff Gennette in February. Spring is shifting over from Bloomingdale’s, where he served as chairman and CEO.
Macy’s also accelerated the expansion of its small-format store strategy, with the goal of tripling the total number of smaller footprint stores through fall of 2025. Starting in 2024, up to 30 new Macy’s small-format locations will open across the country. This expansion is in addition to the nearly 15 small-format Macy’s and Bloomie’s locations that Macy’s, Inc. currently operates.
Additionally, Macy’s continued its effort to revamp its product assortment, most notably its private label offerings. Over the summer, the retailer launched its On 34th apparel assortment, and early results were positive. The debut included more than 750 SKUs and more than 250 unique styles, designed to be mixed and matched to create more than 1,000 outfits. Prices range from $18.50 to $299.50 with sizes ranging from XXS to 4X and 0 to 26W.
Over the next two years, Spring said Macy’s would be working to refresh or replace all existing brands in its portfolio with plans to introduce four new ones.
