Target is amplifying its commitment to artificial intelligence by unveiling several AI-driven features designed to enhance product discovery and provide a more personalised shopping experience. This strategic move aligns with the retailer’s aim to facilitate faster and more efficient shopping for its customers.
Innovative AI Features Enhance Shopping
On Tuesday, Target announced the roll-out of new AI-powered functionalities, including the Review Insights feature introduced in June. This tool utilises AI to distil insights from product reviews, thereby assisting customers in making informed purchasing choices. In August, Target launched an AI-supported Photo Search feature within its mobile app, allowing users to find products by uploading or taking a photo.
Expanded Features for Enhanced Shopping Experience
To complement the Photo Search and Review Insights tools, Target introduced the Buy Again function, which highlights frequently purchased items and offers tailored deals, boosting annual purchase growth. Moreover, the Continue Shopping function connects users with items they’ve previously viewed, allowing for a seamless shopping journey. According to the company, these efforts have led to an increase in product conversions and items added to shopping carts.
“Guests move naturally between our stores and digital channels, and we’re using AI and personalization in purposeful ways to help them find what they need faster, discover new possibilities and shop with confidence,” stated Sarah Travis, Target’s executive vice president and chief digital and revenue officer.
Future Plans and Recent Successes
Looking ahead, Target is poised to introduce additional AI-driven tools. In 2024, the company plans to release the Bullseye Gift Finder, leveraging generative AI for tailored product suggestions based on recipient demographics and interests. Additionally, the Target Trend Brain will use AI to enable merchants to swiftly adapt to new trends.
Target’s AI strategy played a crucial role during the recent back-to-school season, as the retailer tested scalable personalisation improvements. Brad Thompson, Target’s Senior Vice President of Technology, reported that AI is also being utilised to enhance the wish list process by recommending relevant products.
Financial Growth and Outlook
This AI investment aligns with a favourable second quarter, where Target experienced a 5.3% increase in year-over-year net sales, reaching $26.5 billion. Comparable sales climbed by 3.8%, while net earnings doubled to nearly $1.9 billion. Consequently, Target has revised its full-year sales growth forecast to approximately 5%, up from an earlier prediction of 4%.
Reporting based on coverage first published by retaildive.com.