You are the quarry. Source: Target
The collaboration will launch next week in a test phase, allowing consumers to tag Target in ChatGPT and describe what they are looking for.
Target is aiming to boost sales with a first-of-its-kind partnership with OpenAI.
The deal reflects the retailer’s attempt to reposition itself as Americans increasingly rely on conversational AI rather than traditional search engines for shopping inspiration.
The collaboration will launch next week in a test phase, allowing consumers to tag Target in ChatGPT and describe what they are looking for.
For example, a simple request such as, “Help me plan a holiday movie night,” will prompt ChatGPT to curate Target products and help users build a shopping cart. Once ready, shoppers will be directed to the Target app to complete their purchase. This integration introduces a more interactive shopping model at a time when consumers, especially younger shoppers, are gravitating toward AI-driven discovery rather than browsing websites or apps manually.
Prat Vemana, Target’s chief information and product officer, emphasized that the feature aims to fold seamlessly into everyday digital behavior. In an interview with Yahoo Finance, he described the integration as “conversation curation in a retail space” and noted that it needed to become part of the “natural conversation” shoppers are already having with ChatGPT.
The move aligns with consumer trends: PwC data shows that 15% of Gen Z and millennial shoppers expect to use AI for holiday gift discovery this year. Retailers are increasingly treating AI not as a novelty but as a core shopping gateway. Target’s goal is to recapture the whimsical, curated feel that once earned it the nickname “Tar-jay,” while also meeting the expectations of a generation accustomed to instant, tailored suggestions.
Target’s pivot arrives just weeks after Walmart revealed it would also partner with OpenAI, though details of that initiative have yet to surface. Walmart’s early move signals major competitive tension. With both giants pushing AI-enabled shopping, the industry is entering a phase where conversational commerce could redefine how retailers build loyalty and influence purchasing decisions.
Despite strategic announcements, Target continues facing meaningful financial headwinds. The company reported another quarter of declining sales, with same-store sales down 2.7% and net sales slipping 1.5% year over year. These declines extend a pattern of weakening shopper demand, particularly in discretionary categories such as apparel and home goods, where inflation-weary consumers have pulled back.
Incoming CEO Michael Fiddelke attempted to strike an upbeat tone, saying, “We believe there is a path to win regardless of how the macro environments will continue to evolve around us.” Even so, Target’s stock had fallen 34% year-to-date heading into its earnings week, reflecting investor concern over the company’s momentum.
One bright spot has been digital comparable sales, which rose 2.4% in the most recent quarter. The OpenAI partnership builds directly on that success, signaling that Target sees digital innovation as one of its few scalable levers for growth. Still, the company expects fourth-quarter sales to decline in the low single digits, despite recently cutting prices on 3,000 everyday products to stay competitive during the holiday season.
However, earlier in the quarter, Target eliminated 1,800 corporate roles. When asked whether AI-driven initiatives were connected to the layoffs, Vemana responded that “structural changes are necessary for us to create the agility and speed.” His remarks hint at a broader industry trend: integrating AI often goes hand in hand with reorganizing corporate teams around faster, more data-driven operational models.
Vemana also noted that Target’s future will include more immersive digital tools, including store maps and budgeting features — capabilities Walmart already offers in its app. These tools are part of a broader effort by retailers to merge physical and digital shopping more tightly, ensuring stores remain relevant as online search behavior shifts into conversational interfaces.
“We will continue to evolve. … This is an area where we are learning a lot,” Vemana said.
Shoppers beware. Holiday fraud in 2025 is evolving faster than ever, as attackers use AI, automation, and stolen data to launch large-scale campaigns.
