The retailer announces plans to look at ways to cash in on the value of its real estate amidst soft earnings results for third quarter. Elly Park reports.
Retail giant Macy's announced a big new partnership aimed at cashing in on the value of its real estate. The company also raised its full year guidance. On the news shares of the department store shot up as much as seven percent in morning trading. That despite news that sales remain a soft spot, down more than 4 percent in the third quarter, though in line with forecasts. The partnership, which is with Brookfield Asset Management gives Brookfield exclusive rights to redevelop 50 locations. The move is part of Macy's efforts to shrink its footprint. The company has been under pressure from activist investors to consider spinning off its real estate assets Macy's says it sees strengthening in the apparel business, and that new initiatives like tech watches from Apple, Michael Kors and others indicate improved performance in the fourth quarter.