What: Macy’s rejected a $5.8 billion takeover bid, leading to questions about its future strategy amid declining sales and growing competition.

Why it is important: The fate of Macy’s highlights broader challenges facing the department store sector, including the shift to online shopping, rising operational costs, and intense competition, which have driven other major retailers into bankruptcy.

Macy’s, America's largest department store chain, rejected a USD 5.8 billion takeover bid from Arkhouse Management and Brigade Capital Management, causing its stock to drop by 12%. Despite declining sales and increasing competition, Macy’s has chosen to stick with its current turnaround plan under CEO Tony Spring, which includes closing 150 stores and enhancing its online shopping experience. The company owns significant real estate assets valued between USD 7.9 billion and USD 10.5 billion, but selling these properties could undermine long-term profitability. As Macy’s prepares to celebrate the centenary of its Thanksgiving Day Parade, it faces a tough road ahead in revamping its business amidst a challenging retail landscape.

Can anyone save Macy’s?