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This isn't the Macy's parade you expected. Just last week, the retailer announced a major change in strategy that included store closings and a smaller-store format. Not if Arkhouse Management and Brigade Capital Management have anything to say about it as the investor group upped its takeover bid to $6.6 billion. The new offer, which represents a 33% premium to Macy's shares, will be difficult to ignore given consumer behavior shifts and general headwinds department stores face. And before you think accepting this bid will save the retailer, think again. So why would anyone pay so much for Macy's? Two words: real estate. With some 500 stores, mostly mall anchors as well as downtown flagships like those in New York City, Chicago and San Francisco, Macy’s has some serious real estate holdings. Conservatively speaking, Macy’s real estate could be worth $5 billion to $7 billion, but likely more. Ironically, San Francisco's flagship store which has been in its location for nearly a century is slated for closure upon finding a buyer for the property. Having said that, if Macy's goes private as the investor group plans to do if it can acquire the retailer, the focus will likely be on developing the real estate properties rather than investing further in the core retail business. In any case, Macy's is finding itself between a rock and hard place. On one side, investors see the writing on the wall with physical retail and likely seeking some way to cash out. On the other, going private under the ownership of an activist investment group may provide a temporary lifeline, but inevitably may hasten the end of the retailer https://lnkd.in/gbcjeYx8 #macys #retail #acquisition #business #ecommerce #realestate

Happy Independence Day! 🇺🇸 Here are some interesting stories from the world of retail for Thursday. July 4: 🏬 The parent company of Saks Fifth Avenue has agreed to acquire Neiman Marcus Group in a $2.65 billion deal, creating the ultimate high-end department store behemoth. ⬆️ An investor group seeking to buy Macy's has raised its offer for a second time after previous attempts haven’t resulted in a transaction for the beleaguered department-store chain. 🛠️ LL Flooring is considering filing for Chapter 11 bankruptcy, as higher interest rates act as a brake on home renovation activity. LL Flooring has been trying to sell a distribution centre in Virginia in order to bolster its cash. 🎉 Americans feeding a group of 10 this holiday weekend will spend an average of $71.22, according to the American Farm Bureau Federation. It’s a record high: 5% more than last year and 30% higher than in 2019. 🎶 Mexican-based retailer Gonher will acquire substantially all of Sam Ash Music’s assets out of bankruptcy for $15.2 million, according to court documents. 🌈 The office of Thomas DiNapoli, New York State’s comptroller, said it would vote against re-electing Best Buy’s chairman and other board members over questions regarding the retailer’s commitment to the LGBTQ community. 💰 Amazon founder Jeff Bezos has outlined plans to sell £4billion worth of shares as the stock hits an all-time high. In a filing late on Tuesday, the billionaire revealed he would offload another 25m shares. 💄 USA Basketball has named Glossier, Inc. as the first beauty brand to partner with the organization’s Women’s National Team. Glossier will provide the 2024 team with skin care, makeup and beauty products. 🚫 Food and beverage makers will no longer be allowed to use brominated vegetable oil as an ingredient in their products, the US Food and Drug Administration has said. ⛽️ Drivers filling up their cars on the Fourth of July will encounter the lowest holiday price for a gallon of gas in three years. Across the country, they will have to pay $3.49 on average for a gallon of gas. 🥡 Panda Express said it is reintroducing plant-based chicken — which it developed with Beyond Meat — at hundreds of US stores. Beyond Orange Chicken will be available for a limited time. 🚙 Restaurant operators are investing in voice-ordering technology to take down drive-thru orders and lower their labor costs. But the technology is still years away from hitting most drive-thru lanes. 👩🏽⚖️ CDK Global faces at least eight lawsuits from auto dealerships over cyberattacks that took down the software provider's dealer management system, crippling car sellers' operations. 📚 Australian book retailer Booktopia has gone into voluntary administration due to swirling debts and a decline in sales. The company has been trading at a loss for over a year and has made 50 staff redundant. #retail #retailnews #economy #DailyRetailNews

There’s an interesting article in the Wall Street Journal in which the new CEO of Macy's, Tony Spring, recognizes that shopping at Macy’s stores isn’t fun. It’s one of the first admissions we have had, in a very long time, from the executive suite that the way stores look and feel goes to the heart of Macy’s issues. Basically, the experience just isn’t what it should be. There are lots of little details that give glimmers of hope, including the fact Tony Spring wants to review how clothes are displayed, that he intends to add more staff, and that he believes that first impressions can make or break a store. Among other things, this is what good retailing is all about. Tony Spring’s views are now in direct contrast to those of activist investors Arkhouse which, in the same article, bang on about how Macy’s lacks the necessary experience to properly unlock the value of its real-estate. Real estate is important, but monetizing it is not a retail strategy. It is a financial strategy – and usually an extremely short term one at that. Arkhouse’s approach seems to be some kind of smash and grab raid to generate a quick buck with little concern for the consequences. In my view, retailers should be run as retailers. Macy’s may not always have done a good job of running its business in the past, but Tony Spring’s heart and mind seem to be in the right place. He needs to be given a chance to succeed. However, words need to turn quickly into actions. Otherwise the "Bold New Chapter" plan will turn into the same old story. Link to article in the comments. #retail #departmentstores #retailnews #Macys

Waitrose and John Lewis Partners Waitrose and John Lewis have lost their shine and affection in the hearts and minds of customers recently. It's been a steady decline since 2020, February. I think it's because of 3 simple reasons, some business some personality and some just idiocy. One the idiocy. In their vast distinctly fitted stores the warmth has gone and is replaced by silliness and occasionally annoyingly unhelpful staff. That costs money and loss of market share, I think. The experience seems different. Two leadership skills and people. There was Andy Street, he's the man who ran the shop until 2016. He talked on TV in simple sentences was engaging and he understood the affection premium with the population there was the novelty of the Christmas ad- it sort of worked. That's value and that brings people in. Andy’s replacement was Dame Sharon White an executive with regulatory experience was selected, suddenly leading a £12bn commercial retail business and she seemed to propel the business downwards, during a term with a strange project to develop property assets for housing projects and the sale of a golf course owned by the group to manage a high cost base. She's often described as a businesswoman but I'm not sure. What I find funny is she's also married to a guy who is also a regulator, so happy days. They never liked speaking about profits at John Lewis, only 'sales revenue and products' in well curated releases to the press- a flag all isn't so great. Three the money or business piece. Dame White used Covid19 and the cost of living crisis as excuses for the performance yet it's curious how much any of this are reasons for the fall from grace. For example digital is a key centrepiece today- if you want to swim with the sharks. Why didn't they focus on that when it was ideal during the public destruction of Arcadia and Debenhams? What cost of living crisis when Waitrose customers often hint they shop there and that it's clever to buy 5 apples for more than you need to pay. The indirect outcome of Dame White's awful term was successfully losing market share and customers to M&S, a more dynamic high street rival and much loved food/fashion place. Go to an M&S and look at the difference-it's obvious. The people look good and smile and are funny sometimes. Compare the mood theme between both and you get the picture. It's simple from all this, Sharon was unfit for purpose a political appointment and she was just bad.

🌿 The The Body Shop’s rescue: a testament to brand resilience and strategic turnaround Three days ago, a consortium led by British cosmetics tycoon Mike Jatania saved The Body Shop out of administration, securing 113 UK stores and more than 1,300 jobs. 🔑 Key highlights: 🌍 Global reach: The deal includes control over assets in Australia and North America, positioning the brand for a renewed global presence. 💼 Leadership team: With Jatania as executive chairman and Charles Denton (former chief exec of Molton Brown) as CEO, the experienced leadership duo is set to steer the brand toward recovery, leveraging their expertise in retail turnarounds. 🏪 No immediate store closures: While there are no immediate plans to close stores, the new owners will monitor the estate footprint to ensure operational efficiency. 💡 Focus on innovation: A strong commitment to product innovation and enhancing seamless customer experiences will be at the heart of the brand's revival. 💰 Financial challenges: The deal follows the administration filing in February 2024, with £276m owed to creditors. 🔮 Looking ahead: 🔄 Balancing The Body Shop's heritage with evolving consumer demands 🧪 Reclaiming leadership through product development 🌐 Harnessing the brand’s presence across 70+ global markets The Body Shop's post-administration future will hinge on balancing its iconic values with the demands of a competitive and rapidly evolving market—an ambitious journey for an iconic brand with deep consumer roots. #CorporateRescue #restructuring #CorporateCommunications #TheBodyShop

We asked Sergio Rojas, Dominion Jewelers CEO and member of the National Retail Federation’s Board of Directors, key questions on how he got into the #jewelrybusiness, opportunities and challenges of operating a #smallbusiness, and how Dominion Jewelers maintains relevancy in the industry. Learn more about the history of Dominion Jewelers and the vital role small businesses play in local communities and economies this #SmallBusinessWeek.

The Comeback We’ve All Been Waiting For: John Lewis Bounces Back! John Lewis has been a part of the British retail landscape for over a century, representing more than just a store — it's a place that connects with our national identity. Many of us have fond memories of visiting their stores, particularly around the holiday season, where it symbolises trust, quality, and a warm, familiar experience. That’s why the news of their turnaround starting to work, resonates with us all. It's a brand we collectively root for. The numbers are starting to go in the right direction for John Lewis (90% reduction in losses), but this revitalisation is not just about numbers. John Lewis is getting back to its roots, putting customers first with the relaunch of its 100-year-old price promise. By reinstating the “Never Knowingly Undersold” pledge — now extended to online sales and modernised with AI — it’s a clear signal: they’ve listened to their customers. This move shows the power of refocusing on what matters most: trust and service. In a time when we are surrounded by disruptive competition, a reminder that putting customers at the heart of business decisions is not just nostalgic — it's necessary for longevity. As they gear up for peak trading, with over 500,000 new customers joining in the first half of the year, John Lewis is showing that embracing tradition, while innovating, is a winning strategy. At its heart, this turnaround tells us something bigger: in times of uncertainty, the companies that succeed are the ones that stay true to their identity but aren’t afraid to innovate. We all want to see them do well, not just because of what they sell, but because of what they stand for. Source: https://lnkd.in/e-4ck3rd #JohnLewis #CustomerFirst #RetailResilience #Turnaround #K2BusinessPartners

✍️ 'The #retailer's biggest rival underlines exactly why the department store is struggling' | Writes Matthew Lynn 'John Lewis & Partners and Marks and Spencer both sell upmarket, high quality #food to the middle classes. They combine that with some reliable, if not terribly exciting #clothes. 'And if you need to pop out for some new tea towels they are the places to go. In lots of ways, Marks & Spencer and John Lewis, with its Waitrose & Partners arm, are very similar #companies, with a broadly similar range of products, pitched at the same market. 'And yet that is where the similarities end. As its brilliant set of results this week confirmed, M&S has turned itself around, while its mid-market rival is still struggling. The blunt truth is becoming increasingly clear to everyone. John Lewis’ #employee ownership model might be lovely in theory, but it is now holding the business back - and the recovery of M&S surely proves that.' Read more here ⬇️ https://lnkd.in/eEPD-HPr

Macy’s Consistent Profits Have Faded & The Iconic Department Store Is Betting On Itself. Last week, Macy’s walked away from deal talks with two #investors, leaving the iconic American department store to tackle the challenging #retail landscape alone. The deal, which would have valued the #Macys enterprise at some $9B, was squashed after Macy’s board had concerns that the #financing for the proposed deal wasn’t solid enough, sending shares in the company down more than 14% since the deal was called off one week ago. The buyout saga, which began in December, saw the bid raised twice before ultimately being abandoned. But, the potential buyers weren’t reportedly interested in “Macy’s: The Enterprise” so much as they wanted “Macy’s: The Real Estate Portfolio”. The company's #property portfolio is estimated to be worth anywhere from $5B to as much as $14B. Despite bouncing back relatively strongly from COVID-19, Macy’s once-reliable #profits have all but dried up: in the last 12 months the company has reported $13 M in net #income — a figure that was routinely over $1B in prior years. By ending talks, Macy’s execs are signaling that they will forge ahead with its #turnaround plan. That’s a bold move considering that peers such as #JCPenney and #Sears have succumbed to #bankruptcy, E-commerce continues to grow, and inflation-weary consumers are showing signs of weakness. The strategy is focused on doubling down on its top 50 outlets, closing underperforming stores, and adding new #Bloomingdales and #Bluemercury locations. Macy's is preparing to celebrate the centenary of its #Thanksgiving Day Paradethis year... its next 100 years might require some reinvention. JSesko@meridianfinance.com 818-914-9271 #tradecreditinsurance

Our fearless leader Edie Weintraub was recently featured in a Bisnow article all about the obstacles Atlanta retailers are facing. “While most of the drop was attributed to the lack of availability, many retailers are opening smaller-than-expected locations. Shrinking store footprints are helping retailers achieve cash flow sooner with new locations.” Click the link below to read the full article: https://lnkd.in/eG-zXMVt #CRE #BusinessFeature #BisNow #AtlantaMarket