Target on Wednesday said it’s working with OpenAI to let customers shop its products through ChatGPT, a move that comes as the retailer is struggling to convince inflation-weary consumers to stick with it.
Customers will be able to browse Target’s selection and make purchases within the ChatGPT app, according to the retailer. The tool will debut next week, providing access to ChatGPT’s 800 million weekly active users in time for the holiday shopping season.
Target is leaning on price cuts and a $1 billion investment plan to revive its brand, the retailer said separately Wednesday, as same-store sales fell 2.7% in the latest quarter and profit tumbled 19%. With shoppers increasingly relying on AI to find products online, other big retailers — including Walmart, which struck a similar partnership with OpenAI last month — are turning to the technology to boost sales.
Here’s how the ChatGPT-powered Target tool will work: Inside the ChatGPT app, consumers can tag Target and ask for ideas, such as if they’re planning something like a holiday family movie night. The Target app will then suggest specific products, such as blankets or snacks, and allow users to buy them directly without leaving the ChatGPT interface.
Target said that AI will eventually start to understand and predict what customers want to buy.
A recent Harris Poll shows that nearly half of Gen Z consumers would trust AI as a personal shopper that helps them pick out what they buy and find deals. Streamlining the purchasing process could help retailers boost sales, according to retail experts.
