Target announces partnership with OpenAI amid sales slump

Watch Target announces partnership with OpenAI amid sales slump - Straight Arrow News on Dailymotion

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00:00Target's latest earnings show the company is slowing down.

00:03Sales dropped about 3%, fewer people are shopping in stores,

00:06and profits fell almost 20% compared to last year.

00:10The company says the holiday season will likely be weaker too

00:13since many shoppers are focusing on basics like food and beauty

00:16instead of extras like home decor.

00:18It's not just rising prices causing the trouble.

00:21In 2025, Target faced boycotts on both sides for halving

00:24and then cutting back on diversity and inclusion programs.

00:27That backlash along with inflation has hurt sales

00:30and pushed the stock down sharply since its peak in 2021.

00:34To build itself back up, Target is turning to technology.

00:37It announced a partnership with OpenAI to add a chatbot

00:40similar to ChatGPT into its app.

00:42The bot can suggest products, build shopping lists,

00:45and even place pickup or delivery orders.

00:47Behind the scenes, Target will also use AI to predict shopping trends

00:51and manage its supply chain.

00:52But the big question is whether this will actually solve the real problem.

00:55A Capital One survey shows 71% of people say they support AI in retail,

01:00but only about one in four would actually use it.

01:02That means convenience alone may not be enough to bring back customers.

01:06So, with the holiday sales expected to dip again,

01:08is Target's move into AI just about being trendy,

01:11or is it a test to see if technology can steady a business

01:14that's already under pressure?

01:16Let us know what you think in the comments,

01:18and follow us here for more.