We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Target Uses AI Personalization to Deepen Digital Guest Engagement
Read MoreHide Full Article
Key Takeaways
Target's AI-powered wish lists helped lift creations more than 50% and key-page conversion nearly 20%.
External AI-platform traffic to Target is growing at more than 3.5 times the industry pace year over year.
Target shares rose 21.7% in three months, while its industry declined 7.3%.
Target Corporation (TGT - Free Report) is increasingly leaning into artificial intelligence (AI) technologies to personalize the digital shopping experience and deepen engagement with its core consumer base. As part of its broader push to accelerate tech capabilities, the retailer is utilizing AI-powered tools designed to streamline discovery and deliver highly customized content to digital shoppers.
Target has also joined with OpenAI, Google Gemini and other leading platforms to participate in the early development of agentic commerce. Although traffic from external AI platforms remains a small part of the business, management said this traffic is expanding at more than 3.5 times the industry pace compared with a year earlier.
The personalization push is also becoming visible within Target’s own digital ecosystem. During the back-to-school and back-to-college season, the company introduced AI-powered teacher and college wish lists, along with more personalized content on the Target app’s home screen. This tailored approach resonated strongly with consumers. Total wish-list creations increased more than 50% year over year, the number of items added to those lists more than doubled, and conversion across key back-to-school pages rose nearly 20%.
These trends show how Target is using AI not simply as a back-end efficiency tool, but as a way to improve discovery and engagement in digital shopping. By pairing personalized app experiences with AI-enabled shopping tools and external AI-platform partnerships, Target is broadening how guests can find, organize and purchase products across its digital channels.
How Target Compares With Walmart and BJ’s Wholesale
Walmart Inc. (WMT - Free Report) is using AI to make digital shopping more personalized and convenient. Walmart said usage of its AI-powered Sparky assistant increased 70% year over year, while customers using Sparky spend 40% more per order. Walmart also highlighted Sparky’s ability to build meal plans, recommend products and recognize prior purchases across stores and online, helping shoppers avoid duplicate purchases and simplifying product discovery.
BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) is also deepening digital engagement through AI-enabled shopping support. BJ’s Wholesale said its AI-powered assistant, Bev, has handled more than 100,000 member conversations, helping shoppers find products, check club hours and better use their memberships. BJ’s Wholesale is pairing this capability with broader digital convenience, as digitally enabled comparable sales rose 30% in the second quarter of fiscal 2026 and digitally engaged members demonstrated stronger spending and loyalty.
How Does Target Stack Up Against Its Industry?
Target has seen its shares rally 21.7% over the past three months against the industry’s 7.3% decline.
Image Source: Zacks Investment Research
What Does Target’s Current Valuation Suggest?
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 16.21, lower than the industry’s 26.78. However, the stock is trading above its 12-month median level of 14.81.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Target?
The Zacks Consensus Estimate for Target’s earnings per share for the current and next fiscal year has increased by 91 cents and 19 cents to $10.43 and $9.38, respectively, over the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Target Uses AI Personalization to Deepen Digital Guest Engagement
Key Takeaways
Target Corporation (TGT - Free Report) is increasingly leaning into artificial intelligence (AI) technologies to personalize the digital shopping experience and deepen engagement with its core consumer base. As part of its broader push to accelerate tech capabilities, the retailer is utilizing AI-powered tools designed to streamline discovery and deliver highly customized content to digital shoppers.
Target has also joined with OpenAI, Google Gemini and other leading platforms to participate in the early development of agentic commerce. Although traffic from external AI platforms remains a small part of the business, management said this traffic is expanding at more than 3.5 times the industry pace compared with a year earlier.
The personalization push is also becoming visible within Target’s own digital ecosystem. During the back-to-school and back-to-college season, the company introduced AI-powered teacher and college wish lists, along with more personalized content on the Target app’s home screen. This tailored approach resonated strongly with consumers. Total wish-list creations increased more than 50% year over year, the number of items added to those lists more than doubled, and conversion across key back-to-school pages rose nearly 20%.
These trends show how Target is using AI not simply as a back-end efficiency tool, but as a way to improve discovery and engagement in digital shopping. By pairing personalized app experiences with AI-enabled shopping tools and external AI-platform partnerships, Target is broadening how guests can find, organize and purchase products across its digital channels.
How Target Compares With Walmart and BJ’s Wholesale
Walmart Inc. (WMT - Free Report) is using AI to make digital shopping more personalized and convenient. Walmart said usage of its AI-powered Sparky assistant increased 70% year over year, while customers using Sparky spend 40% more per order. Walmart also highlighted Sparky’s ability to build meal plans, recommend products and recognize prior purchases across stores and online, helping shoppers avoid duplicate purchases and simplifying product discovery.
BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) is also deepening digital engagement through AI-enabled shopping support. BJ’s Wholesale said its AI-powered assistant, Bev, has handled more than 100,000 member conversations, helping shoppers find products, check club hours and better use their memberships. BJ’s Wholesale is pairing this capability with broader digital convenience, as digitally enabled comparable sales rose 30% in the second quarter of fiscal 2026 and digitally engaged members demonstrated stronger spending and loyalty.
How Does Target Stack Up Against Its Industry?
Target has seen its shares rally 21.7% over the past three months against the industry’s 7.3% decline.
Image Source: Zacks Investment Research
What Does Target’s Current Valuation Suggest?
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 16.21, lower than the industry’s 26.78. However, the stock is trading above its 12-month median level of 14.81.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Target?
The Zacks Consensus Estimate for Target’s earnings per share for the current and next fiscal year has increased by 91 cents and 19 cents to $10.43 and $9.38, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Target currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.