Dec 26 (Reuters) – Target is facing pressure from hedge fund Toms Capital Investment Management, which has made a significant investment in the retailer, the Financial Times reported on Friday, citing people familiar with the matter.
Shares of the company were up 1.5% after the news. The stock has lost about 26% of its value this year.
The Minneapolis-based retailer has posted three straight quarters of falling comparable sales and is betting on incoming chief and longtime company executive Michael Fiddelke to revive growth, as the business faces pressure from strained household budgets and tariff uncertainties.
Meanwhile, rival Walmart has gained market share with its focus on cheap groceries and household essentials, coupled with fast doorstep delivery.
“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…,” Target said in a statement to Reuters.
Target has plans to spend an additional $1 billion in 2026 on new store openings and remodels. It has also cut 1,800 corporate roles as part of a broader restructuring.
Earlier this year, Toms Capital had built a stake in Tylenol maker Kenvue before its sale to Kimberly-Clark last month for $40 billion.
Toms Capital did not immediately respond to a Reuters request for comment.
(Reporting by Savyata Mishra and Sanskriti Shekhar in Bengaluru; Editing by Vijay Kishore)
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