Macy's Deal -- Why Not? Think Big or Go Home

02/03/17 09:21AM EST

Macy’s definitely can be involved in either side of a deal. Remember Macy’s/May in Feb 2005?

  • So Macy’s is on the block – ‘entertaining friendly offers.’
  • Guess what, I’m entertaining friendly offers on my house, my cars, my favorite guitar, and that pocketwatch my (awesome) Grandfather left me in the will (well, maybe not that!).
  • A big part of me says that Macy’s is using the press to buoy its stock when Lundgren is getting out of Dodge.
  • Another part of me wonders who in their right mind would buy Macy’s. But again, that’s probably the consensus view.
  • The reality is that this is a climate where we have to consider all transformational deals.
  • It’s so easy for analysts in any sector to say ‘no way anyone can buy that’. That’s a JV way of thinking.
  • Remember that fateful day Federated bought May in Feb 2005? I was short MAY on that day on the buy-side. Maybe that’s why I’m no longer on the buy side (not really, but you get the point).
  • Remember AOL/TWX?
  • There are so many deals to be done here. Why can’t Macy’s buy DDS, KSS, and even JCP (and pay GS for securitized stores)? Seems unrealistic – but so did MAY.
  • Why can’t we see consolidation at the REIT/Retailer level? Why won’t AMZN buy physical anchor space assets to use as a DC?
  • We all need to consider the ‘unconsiderable’.

 

We’re doing what I think will be a great deck with very out-of-consensus strategic calls on March 6th. Details to come. 

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