Target Brings AI Magic to Holiday Shopping for a Smarter Experience

Target Corporation TGT is introducing a wave of AI-powered tools to make holiday shopping simpler, more personalized and more enjoyable for guests everywhere. The company’s latest innovations combine intelligent technology with seasonal excitement, helping shoppers plan, find and purchase everything on their wish lists at ease.

Target’s digital strategy continues to strengthen the connection between online and in-store shopping. Guests who use the Target app while shopping in stores have basket sizes nearly 50% higher than those who do not, reflecting how the app enhances discovery and engagement. This insight has inspired Target to deliver a more connected, personal and intuitive shopping experience — one that simplifies gift-giving and brings more joy to the season.

A key feature of this initiative is the AI-powered Gift Finder, which provides customized gift recommendations based on information about the recipient or occasion. The List Scanner further enhances convenience by allowing guests to scan handwritten or digital lists directly into the Target app, instantly transforming them into shoppable carts for a more organized and efficient shopping process.

Inside stores, the upgraded Store Mode offers a smarter, more interactive shopping experience by guiding guests through aisles and suggesting alternative fulfillment options such as same-day or next-day delivery when items are unavailable. The feature helps ensure that guests can find everything they need quickly and easily.

To make shopping even more fun, Target has introduced a digital “Find Bullseye” scavenger hunt and virtual animated helpers that engage guests with lighthearted interactions. Through these innovations, Target continues to make holiday shopping easier, smarter and more enjoyable for families nationwide.

WMT & BBY Advance AI Strategies as TGT Expands Capabilities

Walmart Inc. WMT continued to advance its artificial intelligence initiatives aimed at improving customer experience, employee productivity and overall operational efficiency. In the second quarter of fiscal 2026, Walmart launched “Sparky,” an AI-powered assistant integrated into its app to enhance search functionality and deliver more personalized shopping experiences. The retailer also established new leadership roles focused on AI acceleration and platform development, underscoring Walmart’s long-term commitment to technology-driven growth.

Best Buy Co., Inc. BBY continued to accelerate its digital transformation through significant advancements in AI and emerging technologies in the second quarter of fiscal 2026. Best Buy introduced more than 125 AI-powered laptops and desktops — nearly 70% of which are retail exclusives equipped with CoPilot Plus capabilities. Additionally, Best Buy trained more than 16,000 experts to help customers explore AI applications and integrate smart technologies into everyday life, reinforcing its leadership in consumer tech innovation.

Target’s Price Performance, Valuation & Estimates

The TGT stock has lost 32% year to date against the industry’s growth of 4.1%.

Target’s forward 12-month price-to-earnings ratio of 11.56 reflects a lower valuation than the industry’s average of 29.78. TGT carries a Value Score of A.

The Zacks Consensus Estimate for TGT’s fiscal 2025 earnings implies a year-over-year decline of 16.3%, while the same for fiscal 2026 indicates growth of 9%. Earnings estimates for fiscal 2025 and 2026 have been unchanged and southbound by 1 cent per share, respectively, in the past seven days.

Target currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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