Activist investor Barington Capital has taken a stake in Macy's (M) and is advocating for significant changes to improve the department store's struggling stock, The Wall Street Journal said on Monday, citing a presentation crafted by Barington to Macy's shareholders to disclose its position.

The report said that one major proposal would create a separate real estate unit to unlock the value of Macy's owned and leased properties which Barington estimates could be worth between $5 billion and $9 billion, more than the company's current market capitalization.

Barington, collaborating with property firm Thor Equities, intends to present its position and recommendations in a PowerPoint to Macy's shareholders, which is expected to be made public on Monday, the report said.

While the exact size of the stake is not disclosed, the Wall Street Journal reported that the investors are also urging Macy's to explore strategic options for its other chains, Bloomingdale's and Bluemercury, viewing them as luxury brands that could perform better if separated.

It added that Barington has also proposed reducing capital expenditures from about 4% to 1.5%-2% of total sales and repurchasing $2 billion to $3 billion in stock over the next three years.

The changes could increase Macy's stock value by up to 200% in three years, the Wall Street Journal said, citing the presentation.

Additionally, Barington and Thor are seeking board seats and suggest Macy's follow Dillard's model for cost management and shareholder returns.

Barington and Macy's have not immediately responded to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)