Dive Brief:
- Target introduced a suite of new AI-powered shopping features aimed at enhancing discovery and personalization, according to a Tuesday press release.
- In June, the company released its Review Insights feature, which uses AI to summarize details mentioned in product reviews to guide shoppers’ purchasing decisions.
- In August, the retailer debuted an AI-supported Photo Search feature in its mobile app, which allows consumers to search for products using an image they upload or take.
Dive Insight:
Target wants to help shoppers find what they need faster and in a more personalized way by utilizing AI.
Along with its Photo Search and Review Insights functions, the retailer introduced Buy Again to surface frequently purchased items, past purchases and relevant deals based on previous shopping. The function has helped deliver strong year-over-year growth in purchases, according to the company.
Additionally, the Continue Shopping function, which launched last fall, connects customers with products they’ve recently viewed.
So far, the retailer’s Review Insights feature has led to an uptick in conversions and products added to carts, the company said.
“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,” Sarah Travis, executive vice president and chief digital and revenue officer at Target, said in a statement.
Target has been deploying other AI features aimed at driving sales for itself and its merchants. In 2024, the company launched its Bullseye Gift Finder, which uses generative AI to provide product recommendations based on the recipients’ hobbies, age and other traits. The retailer also developed Target Trend Brain, which uses AI to help its sellers respond to trends faster.
Target’s AI push continued into this year’s back-to-school season. The retailer is using AI to test personalization at scale, Target Senior Vice President of Technology Brad Thompson told Retail Dive earlier this month. The retailer is using AI to improve the wish list process, in part with product recommendations.
Target’s AI efforts follow a positive second quarter. The retailer reported a 5.3% year-over-year increase in net sales to $26.5 billion, and comparable sales rose 3.8%. Net earnings surged 100% year over year to almost $1.9 billion. The retailer increased its full-year guidance and now expects net sales growth of around 5%, compared to a previous expectation of 4%.
