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.
How WMT, TGT & BJ Are Betting Big on AI-Powered Shopping
Read MoreHide Full Article
Key Takeaways
Walmart's AI assistant Sparky saw 70% user growth, with shoppers using it spending 40% more per order.
Target's AI-driven traffic grew at over 3.5 times the industry rate, while comparable digital sales rose 8.7%.
BJ's AI assistant Bev handled over 100,000 conversations as digitally enabled comparable sales rose 30%.
Retailers such as Walmart Inc. (WMT - Free Report) , Target Corporation (TGT - Free Report) and BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) are advancing their artificial intelligence (AI) capabilities as the technology reshapes the retail landscape. From AI-powered shopping assistants to agentic commerce and intelligent product recommendations, retailers are exploring technologies that enhance shopping experiences, personalize customer interactions and improve operational efficiency.
Walmart Leverages AI to Personalize Shopping
Walmart is strengthening its AI capabilities to make shopping faster, more convenient and personalized. Its AI-powered shopping assistant, Sparky, is emerging as a key component of this strategy. In second-quarter fiscal 2027, the number of customers using Sparky increased 70% year over year, while shoppers using the assistant spent 40% more per order than those who did not.
Sparky helps customers plan meals, discover recipes and add ingredients directly to their shopping baskets. It can also recognize previously purchased products, helping shoppers avoid duplicate purchases. Walmart is simultaneously deploying AI to simplify employees' work and improve productivity.
These initiatives complement Walmart's expanding digital operations. Global e-commerce sales increased 23% during the quarter, including 24% growth in Walmart U.S. The combination of AI-driven convenience and digital expansion presents opportunities to deepen customer engagement and support shopping frequency.
Target Advances Agentic Commerce and AI Personalization
Target is accelerating its technology initiatives, emphasizing agentic commerce and personalized shopping experiences. The retailer has partnered with OpenAI, Google Gemini and other leading platforms to explore emerging AI-enabled shopping opportunities.
Target reported that digital traffic originating from external AI platforms was growing at more than 3.5 times the industry rate year over year in second-quarter fiscal 2026. Although this traffic remains relatively small, the trend highlights an emerging opportunity to attract shoppers through AI-powered discovery.
Target is also investing in AI-powered recommendations, personalized app content and technologies that help merchants respond more quickly to consumer trends. Its AI-powered teacher and college wish lists further demonstrate efforts to simplify shopping. These initiatives complement Target's expanding digital operations. Comparable digital sales increased 8.7% year over year in the quarter, aided by more than 25% growth in same-day delivery.
BJ Enhances Member Convenience Through AI
BJ's Wholesale is incorporating AI into its membership-focused retail model, emphasizing convenience and customer service. Its AI-powered shopping assistant, Bev, has handled more than 100,000 member conversations, helping shoppers locate products, check club hours and access membership-related information.
The initiative complements BJ's Wholesale’s broader digital investments, including ExpressPay, buy-online-pickup-in-club and same-day delivery services. Digitally enabled comparable sales increased 30% in second-quarter fiscal 2026. Management also indicated that digitally engaged members spend significantly more and demonstrate stronger loyalty over time.
AI Creates Opportunities Across Retail
AI adoption presents opportunities for retailers to improve product discovery, customer engagement and operational productivity. Walmart, Target and BJ's Wholesale are increasingly investing in these capabilities. Sustained benefits will depend on customer adoption, effective execution and retailers' ability to translate technological investments into profitable growth.
View the Zacks #1 Rank List
Image: Bigstock
How WMT, TGT & BJ Are Betting Big on AI-Powered Shopping
Key Takeaways
Retailers such as Walmart Inc. (WMT - Free Report) , Target Corporation (TGT - Free Report) and BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) are advancing their artificial intelligence (AI) capabilities as the technology reshapes the retail landscape. From AI-powered shopping assistants to agentic commerce and intelligent product recommendations, retailers are exploring technologies that enhance shopping experiences, personalize customer interactions and improve operational efficiency.
Walmart Leverages AI to Personalize Shopping
Walmart is strengthening its AI capabilities to make shopping faster, more convenient and personalized. Its AI-powered shopping assistant, Sparky, is emerging as a key component of this strategy. In second-quarter fiscal 2027, the number of customers using Sparky increased 70% year over year, while shoppers using the assistant spent 40% more per order than those who did not.
Sparky helps customers plan meals, discover recipes and add ingredients directly to their shopping baskets. It can also recognize previously purchased products, helping shoppers avoid duplicate purchases. Walmart is simultaneously deploying AI to simplify employees' work and improve productivity.
These initiatives complement Walmart's expanding digital operations. Global e-commerce sales increased 23% during the quarter, including 24% growth in Walmart U.S. The combination of AI-driven convenience and digital expansion presents opportunities to deepen customer engagement and support shopping frequency.
Target Advances Agentic Commerce and AI Personalization
Target is accelerating its technology initiatives, emphasizing agentic commerce and personalized shopping experiences. The retailer has partnered with OpenAI, Google Gemini and other leading platforms to explore emerging AI-enabled shopping opportunities.
Target reported that digital traffic originating from external AI platforms was growing at more than 3.5 times the industry rate year over year in second-quarter fiscal 2026. Although this traffic remains relatively small, the trend highlights an emerging opportunity to attract shoppers through AI-powered discovery.
Target is also investing in AI-powered recommendations, personalized app content and technologies that help merchants respond more quickly to consumer trends. Its AI-powered teacher and college wish lists further demonstrate efforts to simplify shopping. These initiatives complement Target's expanding digital operations. Comparable digital sales increased 8.7% year over year in the quarter, aided by more than 25% growth in same-day delivery.
BJ Enhances Member Convenience Through AI
BJ's Wholesale is incorporating AI into its membership-focused retail model, emphasizing convenience and customer service. Its AI-powered shopping assistant, Bev, has handled more than 100,000 member conversations, helping shoppers locate products, check club hours and access membership-related information.
The initiative complements BJ's Wholesale’s broader digital investments, including ExpressPay, buy-online-pickup-in-club and same-day delivery services. Digitally enabled comparable sales increased 30% in second-quarter fiscal 2026. Management also indicated that digitally engaged members spend significantly more and demonstrate stronger loyalty over time.
AI Creates Opportunities Across Retail
AI adoption presents opportunities for retailers to improve product discovery, customer engagement and operational productivity. Walmart, Target and BJ's Wholesale are increasingly investing in these capabilities. Sustained benefits will depend on customer adoption, effective execution and retailers' ability to translate technological investments into profitable growth.