Dive Brief:
- After hinting at the experience in October, Target will launch a beta version of an app on OpenAI’s ChatGPT next week. The on-platform app will allow customers to make multi-item purchases, buy fresh food products and select from drive up, pick up or shipping fulfillment options, per a Wednesday press release.
- The mass retailer said consumers will be able to receive “personalized recommendations” and make purchases by connecting their Target accounts with the app on ChatGPT, per the release.
- Target plans to add more features to the ChatGPT application in the coming weeks, which will include linking Target Circle accounts and providing same-day delivery as a fulfillment option.
Dive Insight:
Target will be one of the first retailers on ChatGPT to offer this level of shopping flexibility, COO and incoming CEO Michael Fiddelke told analysts on a Wednesday earnings call.
"At Target, everything starts with the guest, and that means meeting them wherever they are, including emerging spaces like ChatGPT, where millions of consumers visit," Prat Vemana, chief information and product officer at Target, said in a statement. "We're proud to be one of the first retailers bringing shopping into this new channel, partnering with OpenAI to make discovery through the Target app in ChatGPT as easy and joyful as browsing our aisles. Our goal is simple: make every interaction feel as natural, helpful and inspiring as chatting with a friend."
The retailer was already using OpenAI technologies within the business and had the company train Target staff, Vemana told Retail Dive in an interview last month.
The latest news builds on OpenAI’s push to work with retailers and brands on commerce within ChatGPT.
Walmart in October announced it would integrate with ChatGPT’s new commerce feature, Instant Checkout, which allows for single-item purchases. The move is part of a larger partnership between the companies, with OpenAI also working on an exclusive AI training certification for some Walmart employees.
The ChatGPT Instant Checkout function debuted with Etsy and Shopify in September for U.S. ChatGPT Plus, Pro and Free users. Merchants pay a fee on the transactions and ChatGPT noted at the time that the enablement of Instant Checkout by a retailer does impact rankings in user search queries.
For Target, the expansion into commerce on ChatGPT comes amid major turnaround efforts. The retailer’s streak of declining sales continued into the third quarter, with results released on Wednesday showing merchandise sales dropped 1.9% and store comps declined 3.8%.
