Activist investor Toms Capital Investment Management (TCIM) has made a significant investment in Target amid the retailer’s prolonged sales struggles, according to the Financial Times.
The size of the stake was not disclosed, and the report did not specify what demands the New York–based firm may bring forward.
The move came at a time when Target had 12 consecutive quarters of negative or negligible sales growth and had seen its share price fall 60 percent from its record high during the pandemic, including a 26 percent decline this year. COO Michael Fiddelke is set to become Target’s new chief executive on February 1, succeeding the retiring Brian Cornell.
Target said in a media statement on Friday, December 26, “As part of our robust shareholder-engagement program, we maintain a regular dialogue with the investment community.
“Target’s top priority is getting back to growth, and our strategy to do so is rooted in three strategic priorities: leading with merchandising authority, providing a consistently elevated shopping experience, and leveraging technology,” the statement continued.
Founded in 2017, TCIM has pushed for strategic changes at three other companies while building stakes in them, including Kellanova, U.S. Steel and Kenvue, according to the FT report.
Image courtesy Target
