A group of activist investors is urging Target shareholders to vote against the reelection of Executive Chair Brian Cornell and Lead Independent Director Christine Leahy at the retailer’s annual shareholder meeting in June. Among the reasons cited is Leahy’s oversight of the decision to retain former CEO Cornell as executive chair and special adviser, per a letter to shareholders filed in a notice of exempt solicitation on Friday.
“In our view, Target has endured years of strategic and operational missteps that have led to significant underperformance compromising long-term shareholder value,” the letter from Mercy Investment Services, SOC Investment Group and Trillium Asset Management states. “The recent CEO succession does not signal that the Board is focused on the genuine reset we believe is critical to turn the Company around.”
While Target did not directly comment on the activist investor letter, the retailer directed Retail Dive to its 2026 proxy statement, which outlines the directors nominated and their respective qualifications.
Cornell’s departure as CEO was first announced in August, with company veteran Michael Fiddelke named as his successor. When the move was announced, some industry experts questioned how Fiddelke would be able to make the necessary changes needed at the struggling company while his former boss, Cornell, would remain in the boardroom.
Fiddelke formally took over the chief executive role in February and has since unveiled some of the core components of his turnaround strategy. The approach centers on an effort to regain merchandising authority, which includes revamps of the beauty and baby sections in stores, as well as refreshes of some Target private label brands.
“Given the persistent performance weaknesses at Target, we were surprised at the Board’s decision to promote former COO Fiddelke, rather than hire an outsider,” the activist investors said in their letter. “While we are prepared to give Mr. Fiddelke a chance to turn Company performance around, the potential pitfalls of this decision are compounded by former CEO Cornell’s continued presence on the Board in the powerful Executive Chair role and as Special Advisor to management. Although the arrangement is currently slated to be short-lived, lasting until March 2027, we believe that Target is at a critical juncture and cannot afford another year of the status quo.”
Target’s Q4 net sales decreased 1.5% year over year to $30.5 billion, with comparable store sales down 3.9%, per a March release. The retailer expects net sales to increase about 2% for fiscal year 2026, with a “small increase” in comps and growth in net sales for each quarter.
