Target Has a New Idea for For Spotting Trends: It's Asking AI.

Core Insights - Target is leveraging artificial intelligence to enhance its merchandising and marketing strategies, aiming to regain its reputation for affordable and fashionable products [1][2] - The company is utilizing an internal generative AI tool, Target Trend Brain, to predict trends and simulate consumer responses through "synthetic audiences" [2][3] - Target's recent corporate layoffs, totaling 1,800, are intended to streamline workflow rather than reduce costs, as the retailer faces sluggish sales and declining foot traffic [3][4] Financial Performance - Target reported earnings of $1.51 per share on sales of $25.3 billion, reflecting a 1.5% revenue decline year-over-year [8] - Comparable-store sales decreased by 3.8% year-over-year, while digital sales increased by 2.4%, driven by the popularity of same-day delivery services [8] - The company has adjusted its earnings outlook to the lower end of its previous guidance for the fourth quarter, citing poor consumer sentiment and industry volatility [8] Operational Challenges - Target executives identified issues such as disorganized stores, out-of-stock items, and uninspiring merchandise as contributing factors to their current challenges [4][6] - The company is implementing measures to improve store operations, including concentrating delivery fulfillment in locations with lower foot traffic to enhance customer service in busier stores [7] - New technology is expected to help prevent stockouts of popular items and reduce time spent on backroom tasks [7]