A group of activist investors is urging shareholders of Target to vote against the reelection of Executive Chair Brian Cornell and Lead Independent Director Christine Leahy at the retailer’s annual meeting in June, arguing the current board structure risks undermining the company’s turnaround efforts.
The investor coalition, including Mercy Investment Services, SOC Investment Group and Trillium Asset Management, said years of strategic and operational mistakes have contributed to Target’s prolonged underperformance and weakened shareholder value.
“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,” the group said in a shareholder letter filed Friday.
The activists specifically criticised the board’s decision to retain Cornell as executive chair and special adviser after stepping down as CEO earlier this year.
Cornell’s successor, Michael Fiddelke, officially took over the top role in February after Target announced the transition in August.
At the time, some analysts questioned whether Fiddelke, a longtime company executive and former COO, would have enough independence to drive meaningful change while Cornell remained in a powerful leadership position.
The activist investors said those concerns remain unresolved.
“Target is at a critical juncture and cannot afford another year of the status quo,” the group wrote, adding that the company should have considered an external candidate rather than promoting from within.
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Since becoming CEO, Fiddelke has outlined a turnaround strategy centred on rebuilding Target’s merchandising strength.
The plan includes revamping key store categories such as beauty and baby products, alongside refreshing several private-label brands.
Target did not directly respond to the activist campaign, instead pointing to its 2026 proxy statement detailing the qualifications of its nominated directors.
The governance pressure comes as Target continues to battle sluggish sales performance.
The retailer reported fourth-quarter net sales of $30.5 billion in March, down 1.5% year over year, while comparable store sales fell 3.9%.
Despite the recent weakness, Target expects fiscal 2026 net sales to rise around 2%, supported by modest comparable sales growth and projected gains in every quarter of the year.
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