Jana Partners urges Macy’s to spin off e-commerce unit

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Macy’s may make a whopping $14 billion if it bought its e-commerce business, an activist investor claimed on Wednesday.

Jana Partners, which has compelled modifications at different huge chains together with Outback Steakhouse, Tiffany & Co. and Whole Foods, seems to be encouraging Macy’s to comply with Saks Fifth Avenue’s instance by separating its bricks and mortar business from its on-line business, in accordance to studies.

It’s not clear whether or not Jana holds a stake within the largest division retailer company, however the investor estimates that Macy’s e-commerce division is price at the very least $14 billion, in accordance to the studies citing an investor convention. Macy’s present valuation is $6.9 billion.

Earlier this year, the posh retailer Saks Fifth Avenue bought a stake in its e-commerce business for $500 million and created a separate company for its digital business.

“Macy’s could see an increase in its stock price by 100% if it followed the playbook of Saks,” Jana Partners portfolio supervisor Scott Ostfeld mentioned on the 13D Monitor Active-Passive Investor Summit, in accordance to Reuters.

Macy’s may fetch $14 billion for its e-commerce unit, in accordance to Jana Partners.
Bloomberg through Getty Images
Saks Fifth Avenue was the primary main division retailer to carve off its e-commerce business from its shops.
Bloomberg through Getty Images

Macy’s and Jana didn’t instantly reply for remark.

Shares of Macy’s have been up lower than 1 p.c to greater than $22 on Wednesday.