Messi Department Store Will Sell Five Department Stores.

The largest chain corporation in the US, Macy 'sInc.

The group announced that it had sold five department stores to General second Properties Inc., the country's second largest shopping malls, for $46 million.

Macy 'sInc. Messi said the deal was part of the group's previously announced plan to reorganize its stores. This time, through the sale of five stores in North Carolina, Wisconsin, Oklahoma, Virginia and Kentucky, new resources were allocated to focus on stores and figures with high growth potential, thereby improving profitability.

In the past 6 consecutive quarters of decline in sales, in August this year, the group said it decided to close 100 poor full price stores, the total number of more than 700 stores, a substantial reduction of 14%, hoping to enhance competition with Amazon.com Inc. (NASDAQ:AMZN) Amazon and other TJX and Companies Inc. (NYSE:TJX) T.J.Maxx discount department stores, such as competition, but this will sacrifice the annual sales of 100 million dollars, accounting for about 4% of annual revenue.

The store has been sold for at least 23 years, and the oldest store has been operating since 1980. The Oklahoma City store opened in 1986 of 2016, and in addition to the Mcclain store in Virginia, which will be rented to General Growth Properties Inc. and continue to open, the other three stores will be closed before next spring.

According to data, Macy 's Inc. Messi department store's two quarter performance has shown signs of improvement, but I do not know whether it will last.

Despite a 2% decline in the same store sales in the two quarter ended June 30th, this figure is far below the market forecast of 4.6% and 5.6% in the first quarter.

The total sales volume was $5 billion 866 million, which was better than the market expectation of US $5 billion 750 million, a decrease of 3.9% from 6 billion 104 million US dollars in the same period last year, a decrease of 7.4% over the first quarter and a 6% reduction in the market forecast.

In addition, the group has improved in terms of unit area sales and international credit card sales.

But Macy 's Inc. Messi department store is not only competitive with discount retailers such as T.J.Maxx, but also in the future and Amazon.com Inc..

The prospect of competition for electricity providers is also worrying.

According to investment bank Cowen&Co. estimates, Amazon.com Inc. Amazon will surpass the group next year to become the largest in the US.

Seller.

In response to the continued pressure on Starboard ValueLP to increase shareholder value, the Macy 's Inc. Messi department store is stepping up its release of the value of the property portfolio. In August, the group disclosed that it was selling the Macy' s men's department store in the Union Square Union Square in San Francisco for re development. Some of the stores involved in the above plan were also related to the value release action. The group said that some stores had more property than their retail revenue.

Starboard Value LP joined Macy 's Inc. Messi department store in July 2015 and publicly urged Macy' sInc. Messi department store to reform.

The latter has completed the sale of part of the Broolyn Fulton Street store in New York to Tishman Speyer in January this year, which has earned a total of $270 million in 3 years.

The group also appointed William Leneham as director and Douglas W.Sesler as chief executive of new real estate business.

Now, trading with General Growth Properties Inc., Macy 's Inc. Messi department store expects to bring us $32 million in the third quarter.

According to Bloomberg data, as of June 30, 2016, the shareholding ratio of Starboard ValueLP was 0.77%. Jeff Smith, CEO of the fund, said last week that it had invested too early in the interview with Bloomberg TV, and they gradually lost patience with the Macy 's Inc. Messi department store.

Starboard Value LP believes that if the group split real estate property into a real estate investment trust or take other measures, its share price could rise to $125, and Macy 's Inc. (NYSE:M) rose 1.4% to 37 dollars on Tuesday, 1, and its market value was about 11 billion 700 million dollars, which has fallen by 47.2% since last July.

On the other hand, General Growth Properties Inc.'s recent investments include the joint larger rival Simon Property GroupInc. (NYSE:SPG) Simon real estate group and brand management company Authentic Brands Group LLC for $243 million 300 thousand to acquire the bankrupt American youth clothing salesman, the 229 of the two shopping centers of the two real estate developers.

General Growth Properties Inc. invested $20 million 400 thousand in the paction.

At the time of the deadline, Macy 's Inc. (NYSE:M) rose to 2.14% at 11:07AM 37.27 US dollars.

Deutsche BankAG (DBK.DE) Deutsche Bank yesterday raised its investment rating from "holding" to "buying" and the target price increased by 12.5% to 45 dollars. The bank believes that investors underestimated the recovery potential of Macy 's Inc. Messi department store.