Kohl’s CEO Michelle Gass stated the retailer is doing due diligence after it acquired a letter from activist group Engine Capital urging the corporate to both take into account a sale of its enterprise or a separation of its e-commerce division.

“My primary precedence, the primary precedence of the board, is to drive shareholder worth,” Gass instructed CNBC’s Sara Eisen in an interview Wednesday afternoon. “We’re very aligned with all of our traders in doing that. Now we have ongoing dialogue with a number of traders. We hearken to them. We hear their concepts. And we take that very severely.”

Because it pertains to Engine Capital’s proposal, Gass stated the corporate has been doing “a whole lot of work and can proceed to do a whole lot of work on it to grasp what this implies for our enterprise.”

“Like we’d any massive concept, we’re placing a whole lot of sources to grasp what this implies for our enterprise,” Gass stated.

Engine Capital owns a roughly 1% stake in Kohl’s.

The development of hiving off the digital portion of a retailer has gained in reputation as traders eye proudly owning a bit of a faster-growing e-commerce enterprise.The department store chain Saks Fifth Avenue break up off its e-commerce enterprise right into a separate entity earlier this 12 months. The net enterprise is reportedly making ready to go public at a valuation of $6 billion, or roughly six-times income. It had a $2 billion valuation as not too long ago as March.

Meantime, division retailer operator Macy’s has been urged by activist group Jana Partners to spin off its e-commerce operations from its shops, hoping to fetch a better valuation. Macy’s has since hired consulting firm AlixPartners to evaluate its enterprise construction.

Regardless of the lofty valuations, some specialists argue that the separation does not make a lot sense if the 2 companies are nonetheless sharing so many back-end operations reminiscent of the identical warehouses or merchandising groups.

Kohl’s shares closed Wednesday down about 2%. The inventory has climbed about 25% 12 months to this point.