Dive Brief:
- Expanding on its AI efforts, Target launched a new conversational AI-backed gift finder, per a Wednesday press release. Consumers can get gift recommendations from the retailer by providing details such as the age and special interests of the recipient.
- The mass retailer also debuted a new “List Scanner” function, where customers can scan their handwritten lists within the Target app and add items into carts.
- Target additionally updated its Store Mode functionality for its app with a new in-store digital hunting game called “Find Bullseye.” Users can hunt for the retailer’s famous mascot in stores using the app and receive a free sticker at checkout while supplies last.
Dive Insight:
Target’s latest technology releases come during a particularly important holiday season — one in which the retailer hopes to win back consumers.
"We know so many of our guests love shopping our stores with their phones in hand, and when they use the Target app in-store, their basket sizes are nearly 50% higher as they discover more of what they love," Target’s Chief Guest Experience Officer Cara Sylvester said in a statement. "We're committed to making the shopping experience this year even more connected, personal and intuitive, with innovations that help guests discover the hottest items and Target products they love at a great deal. It's all about meeting them where they are, simplifying gift-giving and helping families focus more on the joy of the season."
Additionally, the app’s Store Mode automatically activates when a customer is in store, helping customers locate products in aisles and learn about alternate fulfillment methods if an item isn't available.
The company has been investing more heavily into generative AI while it enacts a major turnaround strategy led by incoming CEO Michael Fiddelke. OpenAI in an October blog post listed Target as one of 11 partners it plans to welcome with ChatGPT-based apps later this year.
Target has been experimenting with the technology across the business, from merchandising ideation to reviewing third-party seller applications for its marketplace.
For the holidays specifically, Target has been leaning into new merchandise and value-conscious marketing. The mass retailer in September revealed it would sell 20,000 new products this season with about half of them being exclusive to the company. Additionally, Target said thousands of its holiday-related gifts start at $5 and most items would be priced under $20.
