The size of the hedge fund’s stake in the retailer is not known, the Financial Times reported Friday (Dec. 26), citing unnamed sources.
The move came at a time when Target had 12 consecutive quarters of negative or negligible sales growth and has seen its share price fall 60% from the record high it achieved during the pandemic, according to the report.
Target told the FT that it maintained a “regular dialogue” with all its shareholders.
“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 retailer said, per the report. “We are confident the execution of this plan will drive the business forward and deliver sustained, long-term value for shareholders.”
TCIM reportedly did not provide comment for the FT article. The hedge fund did not immediately reply to PYMNTS’ request for comment.
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Founded in 2017, TCIM pushed for strategic changes in three other companies while building stakes in them: Kellanova, US Steel and Kenvue, according to the FT report.
Target reported in November that during the third quarter, its net sales were 1.5% lower than a year earlier, and its comparable sales slipped 2.7%.
Brian Cornell, who will be succeeded as Target CEO on Feb. 1, by Chief Operating Officer Michael Fiddelke, said during an earnings call that the company is working to get “back to sustainable growth.”
Cornell said Target is focused on merchandising, experience and technology improvements designed to better anticipate what consumers want and deliver it more efficiently.
Target announced in August that it chose Fiddelke to take the CEO role and that Cornell will become executive chair of the company’s board.
“It is clear that Michael is the right leader to return Target to growth, refocus and accelerate the company’s strategy, and reestablish Target’s position as a leader in the highly dynamic and fast-moving retail environment,” Christine Leahy, lead independent director of Target’s board, said at the time in a press release.
Target made that announcement on the same day it reported second quarter results showing that same-store sales had dipped year over year and said that its guidance looked for the pullback to continue.
The retail announced in October that it would eliminate 1,800 corporate roles, or 8% of its headquarters workforce, in its largest restructuring in years.
