Target (TGT) has partnered with OpenAI (PC:OPAIQ) to introduce conversational shopping, a move aimed at reviving sales. Under this deal, a new Target app will be integrated into ChatGPT, allowing shoppers to browse, build carts, and check out through simple, natural conversations.
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What Conversational Shopping Looks Like
Beginning with a beta launch next week, customers will be able to tag Target in ChatGPT and describe what they need.
For instance, a request like “Help me plan a holiday movie night” will prompt ChatGPT to build a shopping cart with products from Target, such as snacks and blankets. Once the cart is ready, shoppers will be directed to the Target app to complete their purchase.
This new “conversation curation” feature blends AI suggestions with Target’s products, making shopping feel like a natural extension of how people already use ChatGPT for ideas and planning.
Target will also roll out ChatGPT Enterprise, using OpenAI’s models to improve supply chain forecasting, streamline store operations, and enhance digital tools. These moves signal Target’s efforts to make AI a key part of its turnaround strategy.
Why Target Needs This
Target has been struggling with falling sales and declining profits, reporting nearly a 3% drop in same-store sales in its most recent quarter. By partnering with OpenAI, the company aims to attract younger, tech-savvy shoppers and boost sales amid tough economic conditions and rising competition.
Importantly, TGT joins a growing list of retailers, including Walmart (WMT), Etsy (ETSY), and Shopify (SHOP), that are partnering with OpenAI to bring AI into e-commerce. The move reflects how conversational AI is quickly becoming a key area of competition in the retail sector.
Is Target a Buy, Sell, or Hold?
On TipRanks, TGT stock has received a Hold consensus rating, with eight Buys, 13 Holds, and four Sells assigned in the last three months. The average Target stock price target is $102.41, suggesting an upside potential of 16.64% from the current level.
