Barington Capital and Thor Equities Urge Macy’s (NYSE: M) to Cut Capex, Form Real Estate Subsidiary, and Accelerate Buybacks to Unlock Shareholder Value

Barington and Thor argue that Macy’s is undervalued due to ineffective execution and excessive capex, with shares down ~70% over the past decade. They support the company’s new “Bold New Chapter” transformation plan but believe cash flow risks being wasted on unproductive projects. To maximize value, they recommend cutting capex to 1.5–2% of sales (from ~4%), repurchasing $2–3B of stock over three years, forming a separate real estate subsidiary to unlock $5–9B in asset value, exploring alternatives for Bloomingdale’s and Bluemercury, and adding their representatives to the board. They claim these steps could drive a 150–200% total return for Macy’s shareholders over the next three years.