WAIT, What Is Going on With Macy’s?
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Jeepers and a store we almost called. What was it a week or two ago? It was it was right after Right after Thanksgiving. We talked about this on the podcast. We’re talking about retail. We were talking about Macy’s in particular and driving by Macy’s Herald Square massive store in Manhattan and a Black Friday going by and nobody’s walking around and I said, you know the value of that real estate right there Well as it turns out
Arkhouse Management and Brigade Capital Management, what’s the price? They’re offering to buy out Macy’s, I think it’s about $21 a share, $5.8 billion. Now, Macy’s, that wasn’t too long ago, I think it was back 2014, 2015, stock was sitting around $70 a share. Do I see it going back there? No, I don’t. Don’t forget, Macy’s also owns…
Bloomingdale’s as well. I think Bloomingdale’s has about 30 locations. Macy’s in itself much more. I think it’s closer to 500. I don’t know exactly. However, neither here nor there. It’s a real estate play. It’s not a retail play. You take a look at what Ark House and Brigade… They’re real estate companies. And in particular, you take a look at the way real estate is trending in some of the major cities.
The valuable office space that exists in Manhattan right now You know that the prime buildings where everybody wants to be are going up in and around train stations That train stations Yeah, the Grand Central Station got a Unbelievable new building that’s that was just put up there and it’s very desirable again. It’s the effects Of COVID and people saying themselves. All right
Now you’re gonna make me commute to the city two to three times a week, whatever it may be. If I’m gonna do that, I don’t feel like getting out of the train and then hopping on a subway and having to go somewhere else. So you’re gonna see, even I guess the retail foot, I’ve retailed, the commercial footprint is gonna continue to shrink, but where it’s going to remain strong is in and around train stations. Where’s Macy’s, Herald Square? Yep, right next to Penn Station. And this trend is going to continue throughout.
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country. They’re going to see a lot of, we’re going to see some of the commercial and the office space are going to be near hubs. Hubs where you know we’re going to have guess what? We’re going to have people coming in via train or any other type of means where they don’t have to get off. It’s called a hub and spoke. They won’t have to take the spokes. Watchdog on wallstreet.com
