Macy’s $5.8 Billion Buyout Bid: A Symphony of Risk and Opportunity

What's Inside

Two hedge funds, Arkhouse Management and Brigade Capital, are reported to have joined forces to bid on a takeover of Macy’s for $5.8 billion. We dive into the opportunities and risks that the bid presents and its impacts for the US department store sector.

Data in this report include:

• Macy’s store count, overall and by banner
• Macy’s 10-year new sales and year-over-year growth, 2012–2022
• Proprietary consumer survey data on average age and household income of selected retailers’ customer bases

Companies mentioned in this report include: Dillards, Kohl’s, Macy’s, Nordstrom

Other relevant research:

• US Department Stores—Retail 2024 Sector Outlook: Soft Sales Growth; Opportunities in Different Store Formats and Alternative Models
• Market Navigator: US Department Stores—Softness Ahead Despite Opportunities in Experiences and Alternative Models
• 3Q23 US Earnings Season Wrap-Up: Mixed Performances Amid Weak Demand and Economic Uncertainty
• All research on department store retail
• More Coresight Research coverage of capital markets