🕔 Retail Daily Minute | Target Cuts Outlook & Partners with ChatGPT, Levi's Deploys AI Super-Agent & TJX Wins Budget Shoppers

Hello Omni Talk Fans! Target continues to struggle, but what I find even more troubling is the timing of its OpenAI partnership announcement.

When announcements like that happen on earnings day, they come across as reactive and desperate versus strategic.

I can tell you from my single days – desperate is never good.

In today’s Retail Daily Minute:

• Target posts third consecutive quarter of declining sales and cuts full-year profit guidance, but announces a new ChatGPT shopping integration launching next week.
• Levi's partners with Microsoft to deploy an AI "super-agent" framework across IT, HR, and operations starting in 2026 as part of its journey to become a $10 billion retailer.
• TJX Companies raises full-year outlook after comparable sales climb 5%, continuing to win over budget-conscious shoppers at T.J. Maxx, Marshalls, and HomeGoods ahead of the holiday season.

Plus, 5 Insightful Minutes with Chad Lusk on current consumer sentiment and a quote from a film about wanton desperation.

Today’s Top Headlines

1. Target Cuts Outlook While Doubling Down on ChatGPT Partnership

Target reported lower quarterly sales and trimmed full-year profit guidance amid cautious consumer spending. It still expects modest holiday sales declines and EPS of $7 to $8. Incoming CEO Michael Fiddelke plans increased 2025 investment as Target adopts tools like ChatGPT integration while facing stagnant sales, competition, and customer backlash. (Read More)

2. Levi’s Deploys Agentic AI With Microsoft to Power Next-Gen Retail

Levi Strauss is partnering with Microsoft to deploy agentic AI, including a super-agent across operations and assistants like Stitch and Outfitting. Embedded in Teams via Azure and similar to ChatGPT-style tools, the rollout supports Levi’s DTC expansion, rising revenues, and its goal to become a $10 billion retailer. (Read More)

3. TJX Raises Forecast as Shoppers Flock for Holiday Deals

TJX, parent of T.J. Maxx, Marshalls and HomeGoods, raised its full-year outlook after comparable sales rose 5% last quarter, beating expectations. Strong traffic and higher spending per shopper are boosting momentum, and the retailer expects a robust holiday season as value-seeking consumers continue shifting to off-price deals. (Read More)

4. Amazon Upgrades Rufus AI to Improve Shopping Experience

Amazon is upgrading its AI shopping assistant, Rufus, adding new technical features to make it faster and more helpful. Launched in 2024, Rufus uses generative AI trained on Amazon’s catalog, reviews, and web data to answer questions, give personalized recommendations, and improve product discovery within the shopping app. (Read More)

5. Cambio Roasters Launches Recyclable Aluminum Coffee Pods

Cambio Roasters, founded by former Keurig executives, is disrupting single-serve coffee with recyclable aluminum pods that preserve peak flavor and offer a sustainable alternative to plastic K-Cups. Now in 5,000 stores, the company plans to triple distribution as it scales its organic, small-farm coffee supply chain. (Read More)

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Be careful out there,

-- Chris, Anne, and the entire Omni Talk team