Target announced on November 12, 2025 that it is rolling out a suite of AI‑powered tools designed to make holiday shopping more intuitive and efficient. The new capabilities—Gift Finder, List Scanner, and Store Mode—allow shoppers to receive personalized product recommendations, navigate store aisles with real‑time guidance, and scan wish‑list items to add them to their cart with a single tap.
The launch comes on the heels of Target’s Q3 2024 earnings, in which the retailer reported $25.7 billion in revenue, a 1.1% year‑over‑year increase, and earnings per share of $1.85 versus $2.10 the previous year. The modest earnings growth, coupled with margin pressure from higher digital fulfillment and supply‑chain costs, underscores the need for new initiatives that can lift basket size and drive digital sales during the peak holiday period.
Target’s new AI tools are positioned against similar investments by Walmart and Amazon. Walmart has introduced an In‑Store Savings Tool, Enhanced Search and Navigation, and a party‑planning assistant called Sparky, while Amazon is developing its Rufus assistant and AI Shopping Guides. Target’s focus on in‑store app experience and personalized recommendations differentiates its offering by emphasizing a seamless, connected experience that encourages shoppers to discover more items while they are physically present in the store.
Chief Guest Experience Officer Cara Sylvester highlighted the impact of the new features, noting that guests who use the Target app in‑store see basket sizes nearly 50% higher as they discover more of what they love. She added that the company is committed to making the shopping experience “more connected, personal and intuitive,” and that the AI tools will help families simplify gift‑giving and focus on the joy of the season. Target’s broader holiday strategy also includes exclusive products, price cuts on 3,000 SKUs, and a sub‑$20 holiday meal for four, all aimed at driving foot traffic and online sales.
By integrating AI into the physical store experience, Target reinforces its “stores‑as‑hubs” omnichannel model, bridging the gap between brick‑and‑mortar and digital channels. The new features are expected to increase basket size, boost digital sales, and capture a larger share of holiday spending, addressing the competitive pressure from Walmart and Amazon while leveraging Target’s strong in‑store traffic and customer loyalty.
The announcement signals Target’s continued investment in AI to enhance customer engagement and drive revenue growth during the most critical retail period of the year. With the new tools in place, the retailer aims to capitalize on the holiday shopping surge and strengthen its position as a preferred destination for consumers seeking a personalized, efficient, and enjoyable shopping experience.
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