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While the Nordstrom (JWN) family moves to take the department store chain private in a deal valued at $6.25 billion, what other deals could be on the horizon for major retailers in 2025?
Morningstar senior equity analyst David Swartz believes Macy's (M) and Kohl's (KSS) could be the next to go private, especially as Macy's faces pressures from activist investors Barington Capital and Thor Equities.
"Both Macy's and Kohl's, I think, are still ripe for a takeover because their valuations are very poor, and it's unlikely that they're going to get good valuations anytime soon because investors have just really given up on the department store model," Swartz tells Josh Lipton and Seana Smith.
"And realistically, they should, because department stores have been in decline in the US probably for 20 years."
Watch the video above to hear Swartz's thoughts on the trajectory of department stores Macy's, Kohl's, and Dillard's (DDS).
Catch Morningstar's David Swartz talk about why Nordstrom Rack (JWN) could be the future of the retailer as the Nordstrom family strikes a deal to take it private. Also, watch Yahoo Finance's interview with Macy's chair and CEO Tony Spring from the 2024 Yahoo Finance Invest conference.
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This post was written by Luke Carberry Mogan.