Target Corporation (TGT) is enhancing its digital transformation by partnering with OpenAI to leverage conversational commerce, resulting in a notable 2.4% growth in digital comparable sales and over 35% in same-day services for Q3 fiscal 2025. This AI-driven strategy allows customers to shop via natural language conversations, offering curated product recommendations based on individual needs, thus mimicking an in-store experience. The integration promises seamless multi-item purchases and delivery options within an OpenAI-powered chat interface, increasing operational efficiency and improving product availability across TGT’s inventory.
Despite facing challenges in discretionary spending, this AI-led approach may unlock new demand avenues for TGT, setting the stage for digital growth into 2026. Meanwhile, competitors like Walmart and Best Buy are also enhancing their AI strategies, focusing on personalization and operational improvement. TGT’s stock performance indicates a modest growth of 0.9% over six months, with significant potential for future earnings recovery.
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