Inside Target’s AI-First Retail Operating Model
January 30, 2026
How Target is embedding generative AI across stores, merchandising, and
Category
▪ Cotton futures are trading at their highest level since February 2024, supported by the ongoing weakness of the dollar amid fears of an economic slowdown induced by trade tariffs.
▪ WTI crude oil futures gains are being supported by a weaker US dollar and reduced global oversupply forecasts.
▪ Yarn prices remained flat as concerns over a looming trade war reduced demand.
Markets
How Target is embedding generative AI across stores, merchandising, and
As experimentation fades, AI is being wired into the core
Top-line growth is forecast to slow due to fragile demand,
Disciplined product curation, premium stores, and accessible pricing are driving
Mid tier brands are outperforming both luxury and most fashion
Brands face pressure to shore up profits and rethink strategies
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