Embattled Target feeling heat from hedge fund investor Toms Capital following sales slump

Target is facing pressure from hedge fund Toms Capital Investment Management, which has made a significant investment in the retailer, the Financial Times reported Friday, citing people familiar with the matter.

Shares of the company were up more than 1% after the news.

The stock has lost about 26% of its value this year.

Target is facing pressure from hedge fund Toms Capital Investment Management. Getty Images

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 dialog 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.

Target and Toms Capital did not immediately respond to Reuters requests for comment.