Macy’s could make a whopping $14 billion if it sold its e-commerce business, an activist investor claimed on Wednesday.
Jana Partners, which has forced changes at other big chains including Outback Steakhouse, Tiffany & Co. and Whole Foods, appears to be encouraging Macy’s to follow Saks Fifth Avenue’s example by separating its bricks and mortar business from its online business, according to reports.
It’s not clear whether Jana holds a stake in the largest department store company, but the investor estimates that Macy’s e-commerce division is worth at least $14 billion, according to the reports citing an investor conference. Macy’s current valuation is $6.9 billion.
Earlier this year, the luxury retailer Saks Fifth Avenue sold 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 manager Scott Ostfeld said at the 13D Monitor Active-Passive Investor Summit, according to Reuters.
Macy’s could fetch $14 billion for its e-commerce unit, according to Jana Partners. Bloomberg via Getty Images
Saks Fifth Avenue was the first major department store to carve off its e-commerce business from its stores. Bloomberg via Getty ImagesMacy’s and Jana did not immediately respond for comment.
Shares of Macy’s were up less than 1 percent to more than $22 on Wednesday.
