Target’s holiday push puts 8,000 gifts and AI in focus

By Amara Osei

Target says it will offer more than 8,000 new gifts for the holiday season, with more than half exclusive to the retailer and most new items priced at $20 or under. Many of the new items cost less than $5.

What is Target putting in its holiday range?

Target calls its value proposition “luxe for less.” The retailer cites a $35 throw blanket, a $45 cashmere sweater, $10 pajamas and $5 candles among its holiday examples.

Target will introduce a new Deal of the Day every day from Nov. 1 through Dec. 24. Early Black Friday deals will run from Nov. 5–7.

Modern Retail reported that the strategy comes as holiday shoppers contend with inflation, higher energy costs and tariff-driven price increases.

For shoppers, the offer is simple: more gifts, many exclusives and lower entry prices.

How much pressure will shoppers face?

The National Retail Federation’s recent survey found that 56% of holiday shoppers said the economy would affect their spending plans. Among that group, 43% planned to shop sales more often, 31% expected to comparison shop online more frequently and 29% planned to use coupons more.

The NRF expects U.S. holiday retail sales for November and December to rise 4.2% from the prior year, reaching a record $1.013 trillion. The forecast could reflect higher prices, and the source did not separate price growth from sales volume.

NRF President and CEO Matthew Shay said in a press release: “This year’s forecast reflects our confidence that consumers will prioritize the holiday season even as they remain mindful of their budgets. Retailers are prepared to meet that demand with competitive prices, value and choices for every budget.”

On Oct. 20, Target CEO Michael Fiddelke told members of the media: “Value plays an important role all year, especially so during the holiday season.” He said value also requires finding the right item for oneself or a loved one and bringing some joy to a hectic season.

The forecast indicates resilient spending, but it does not establish that shoppers will buy more units.

How is Target controlling prices?

Cara Sylvester, Target’s executive vice president and chief merchandising officer, said the company has expanded its range at key price points, meaning specific price bands. She contrasted the new $5 candles with Target’s previous $10 entry option. This year, shoppers can choose candles at $5, $10 and $15.

Target’s owned brands are products sold under retailer-controlled labels spanning apparel, home and beauty. Among this year’s holiday food items, a sugar cookie kit and hot chocolate bombs come from private labels Favorite Day and Good & Gather.

Target will also sell mix-and-match scents from its exclusive fragrance brand Haeze and $5 Gigglescape plush toys. The company has added 170 new baby-apparel gifting items, all exclusive to Target.

Target’s apparel business is 80% owned brands, Sylvester said. She attributed that mix to decades of sourcing and design work and strategic supplier partnerships. Those relationships, she said, help Target obtain the right product and fabric while controlling cost and price.

The source disclosed no margin, sales-volume or product-level cost figures, so Target’s savings claims remain unquantified.

The retailer will also carry national and international brands including Lego, Nintendo and SharkNinja. Target plans to feature beauty and food Advent calendars, or pre-holiday product boxes and displays, alongside stocking stuffers and NeeDohs.

Sylvester said Target will place greater emphasis on wellness and protein-focused products, including during the holiday period.

Owned brands appear to be Target’s main tool for keeping more products within cheaper price bands.

What can Target’s AI assistant do?

Target has launched Ask Target on Target.com and in its app as a conversational AI assistant, meaning a system that answers questions and generates recommendations. The product remains in beta, or limited release, and Target has expanded its features since launch.

Ask Target can:

• Generate gift inspiration for the shopper or another person.
• Create a holiday wishlist.
• Answer questions about products.
• Recommend items against a shopper’s criteria, such as Looking for a quiet luxury-inspired gift for her, focusing on clothing and accessories under $50.

Sylvester said the assistant is not limited to holiday shopping. Shoppers can use it for broader product ideas and extended conversations.

She said Target Beauty Studio team members began using Ask AI, also referred to as Ask Target, to obtain information and discuss products after the studio launched a few weeks earlier. Sylvester described the response as early adoption and said consumers were already accustomed to conversational AI.

Target provided no user numbers, adoption rate or sales results for Ask Target.

The retailer has added several other AI-driven commerce tools:

• Photo Search: Introduced in August, the app feature matches a photographed item, such as a plaid blanket, with similar products in Target’s catalog.
• Review summaries: Target began adding AI-generated summaries of product reviews in June.
• Buy Again: The recent feature uses AI-driven personalization, or algorithm-led recommendations, to surface frequently purchased and previously bought items.

Ask Target could shorten product discovery, but Target has not shown that it changes purchases. Through Dec. 24, its daily deals, exclusives and expanded assistant will test whether affordability translates into traffic and sales; the retailer disclosed no performance target.