Target Touts Jump in Traffic From AI Platforms as Sales Climb

The retailer reported second-quarter 2026 earnings results Wednesday (Aug. 19) that showed guest traffic up 3.6% and comparable sales climbing 3.8%.

Speaking during an earnings call, CEO Michael Fiddelke said Target is seeing the benefits of its agentic commerce partnerships with AI companies like OpenAI.

“And while still small in total today, as more consumers begin to explore the benefits of agentic shopping, Target’s digital traffic sourced from external AI platforms is growing,” Fiddelke said. “More than three and a half times the industry as compared to a year ago.”

AI is already being deployed to personalize the guest experience, such as via AI-powered teacher and college wish lists, which saw creations jump by more than 50% this year ahead of the company’s critical back-to-school season, Fiddelke said. Internally, the company is using Proxima, a digital twin of its middle-mile supply chain.

“Proxima helps us more efficiently evaluate inventory processes between our buildings and stores, giving our teams a way to quickly understand potential downstream impacts, learn faster and make inventory decisions with greater confidence,” Fiddelke said.

Although segments such as home and apparel remain “flattish,” Target is seeing momentum in high-frequency categories, Fiddelke said. Food and beverage sales experienced a boost as Target embarked on what it called its largest center-store transition in a decade, with snack sales specifically surging more than 15%.

Digital engagement is also shifting, with digital comparable sales climbing 8.7%. Target also recorded a 25% surge in same-day delivery services, according to the earnings release.

To lead its digital efforts, the company last week appointed Chandu Nair as its first chief AI officer. Nair most recently served as senior vice president, stores, data, AI and innovation at Lowe’s. He is due to step into his new role Aug. 24.

Nair said at the time of his hiring that a more coordinated approach to AI could help Target stay on top of the changing needs of customers, boost inventory management, simplify work for staffers and allow for faster, better-informed decisions.

When Fiddelke assumed his role in February, he said technology is a top priority for the retailer, including establishing a guest experience that makes digital interactions “easier, more inspiring and welcoming” and technology that eliminates friction and helps create better experiences for customers.

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