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Coles CEO Michelle Gass said retailers are doing due diligence after receiving it. Letter from Activist Group Engine Capital Encourage the company to consider either selling the business or separating the e-commerce division.
“My top priority, the board’s top priority, is to increase shareholder value,” Gus told CNBC. Sara Eisen In an interview on Wednesday afternoon. “We are very close to all investors in doing that. We are in continuous dialogue with many investors. We listen to their opinions. I We listen to their thoughts, and we take it very seriously. “
In connection with Engine Capital’s proposal, Gus said, “We’ve done a lot of work to understand what this means for our business, and we’ll continue to do a lot.” Told.
“Just as we come up with big ideas, we’re investing a lot of resources in understanding what this means for our business,” Gus said.
Engine Capital owns an approximately 1% stake in Coles.
As investors turn to owning part of their fast-growing e-commerce business, the tendency to hide the digital part of retailers is gaining in popularity. Department Store Chain Saks Fifth Avenue Earlier this year, we split our e-commerce business into separate entities. The online business is reportedly preparing to publish at. Valuation of $ 6 billion, Or about 6 times the profit. Most recently, it was valued at $ 2 billion in March.
Meanwhile, the department store operator Macy’s Is prompted by Activist group Jana Partners Spin off your e-commerce business from your store in the hope of getting a bigger reputation.Macy’s since then Hired consulting firm AlixPartners Review the business structure.
Despite its high reputation, some experts argue that separation does not make much sense if the two businesses share a large number of back-end operations such as the same warehouse or merchandising team. increase.
Coles shares fell about 2% on Wednesday. Inventories have risen by about 25% so far.
Retailers are working to understand suggestions from activists
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