Why This Retail Expert Doesn't See An REIT Fit For Macy's

Shares of

continued trading higher on Friday after Jeff Smith of Starboard Value Management said during the Delivering Alpha conference on Wednesday that the fashion and accessory retailing giant could unlock tremendous shareholder value if it were to do a sale-leaseback of its stores and create a REIT.

Commenting on the proposed REIT spin, Craver note that are two ways in which retailers "wake up every morning." On the one hand, a retailer can wake up as a "true retailer" that focuses on running its stores and digital properties. On the other hand, some retailers are looking to "create value by identifying with the value of their real estates." "Macy's to me still sits at a place where they are a true retailer," Smith further added. "They just want to sell products within their stores. They like to own their real estate." Smith continued that Starboard Value will create some "excitement" in the short term but he doesn't see Macy's coming to the market and spinning off its iconic New York City location or any other major properties. The retail expert also pointed out that

implemented an REIT strategy, but the struggling company is "very different in their mindset" from Macy's in their overall strategy.