The in-person retail that department stores offer has faced an uphill battle in recent years. Buying online has become a true contender for consumer business with that service for notable chains like Macy’s.
It also shows the evident reason for the chain’s recent rise in stock price. Jumping seven percent, Macy’s stock reached $33.04 late last week as interest in a potential sale climbs as well.
Hudson Bay Co.’s Richard Baker has materialized as a potential suitor for the $27 billion business. He isn’t alone in his prospective interest, though the brand’s track record would precede them in the hypothetical event that it is true. Following the successful purchase of German chain Galeria Kaufhof in 2015, it certainly seems plausible.
Some sources have confirmed Hudson Bay Co.’s interest in making the rumors a reality. Conversely, others have described talks between both sides as “preliminary,” also referencing other transactions outside of the United States such as those previously with Neiman Marcus Group.
Other competition can’t be ruled out either. Direct competitor Amazon, for one, has the funding to accomplish the transaction. The online giant has become arguably the most powerful retailer on the planet now. As of May 2016, the company was valued at more than $35 billion and places twelfth on Forbes’ list of the world’s most valuable brands.
The former start-up’s progress speaks for itself as it still continues to grow. Given their position in the market, the pressure they’ve put on the retailer only strengthens their leverage if that concept comes to fruition.
Hudson Bay Co. and Amazon both declined to comment regarding a possible deal.