Canadian Hudson’s Bay has apparently approached its American competitor Macy’s to discuss an acquisition. Macy's has nearly 900 stores in the United States and is one of the largest department store chains of the country.
Talks in early phase
Neither Macy's nor Hudson's Bay confirmed the news, but sources indicate they are indeed talking, although these talks are only in an extremely early phase. Not only an acquisition is on the table, also a deal surrounding Macy's real estate and a possible collaboration. To illustrate the difference between both companies: Macy's has an estimated value of nearly 9 billion euro, 5 times higher than its Canadian competitor.
Macy’s is currently in the midst of a major restructuring plan and it will close about 100 stores along the way, after it had already closed 40 stores earlier which meant 5,000 people lost their job. Among the 100 stores it may close now are not only onerous stores, but also stores with high real estate value. Those could possibly be worth more sold than when they are kept open, especially considering Macy's has about nearly 20 billion euro invested in real estate.
Macy’s will turn its attention to online sales in the future, but also to China, where it has more room for growth.