Target launches AI-powered 'store mode' to rival retail competitors

Target has quietly introduced a suite of artificial intelligence features to its mobile application, aiming to reclaim its position as a digital leader in the retail sector.

The upgrades focus on a blended shopping experience, acknowledging that approximately one-third of customers now utilise the app while physically browsing store aisles.

Sarah Travis, Target’s chief revenue and digital officer, highlighted the significance of this evolution at a recent investor meeting, stating: “The experience that you get today is vastly different than the experience that you would have gotten six months ago.”

The refresh introduces functional tools designed to streamline the transition from domestic planning to in-store purchasing.

A new handwriting scanner allows users to photograph paper lists, which the AI then converts into precise product suggestions.

Furthermore, a tailored ‘Buy it again’ tab uses historical data to suggest frequently purchased essentials and active discounts.

Travis noted that these personalised features create a unique journey for every shopper, describing the interface as "essentially a speed run for weekly essentials."

The most significant update involves the implementation of a sophisticated geolocation tool known as 'Store mode' which activates upon arrival.

The app prompts users to enter this mode, provided location sharing is enabled. Instead of searching for items individually, the app now displays every item from a user's digital list as a pin on a store map.

The strategic convenience appears to be effective for the retailer's bottom line. Travis revealed: “When guests use store mode, their baskets grow by more than 7%.” These subtle tech integrations are helping Target maintain its digital edge in an increasingly competitive market.