Dive Brief:
- Kohl’s has launched a Gift Finder for Mother’s Day, a conversational AI shopping agent created with Google Cloud’s Gemini Enterprise for Customer Experience, the retailer said in a press release last week.
- The shopping agent provides personalized gift ideas based on the recipient’s hobbies, interests and style. Shoppers can upload images to find similar products, receive recommendations, review product information and add items to their cart without leaving the chat.
- Kohl’s has also built an AI analytics tool for employees powered by Google Cloud’s Conversational Analytics in Looker. Employees can use a conversational approach to work with data including comparing product trends or determining what factors may be driving results.
Dive Insight:
Following in the footsteps of other retailers, Kohl’s is using AI to both simplify shopping for customers and to aid employees.
Like Kohl’s, other retailers have been using AI to help customers find the right gifts. In 2023, Simon, the retail and mixed-use real estate company, unveiled its “HolidAI” tool, which used ChatGPT 4.0 to guide shoppers through its product database. Last November, Target introduced its own gift finder tool that offers gift recommendations based on criteria like age and special interests.
Kohl’s is deploying AI tech as it revamps its business. In February, the retailer released an update on its long-term turnaround strategy, which some analysts say was scant on details. In its update, the retailer said it will expand “what’s possible for families with quality brands and styles priced for real life.”
The retailer recently added to its product assortment to highlight value-driven products. In February, Kohl’s debuted “the Deal Bar” across all of its stores, where shoppers can find items priced below $10. The following month, it launched its Sea and Skye private label brand for teen and tween girls.
In its latest earnings, fourth-quarter sales slid by almost 4% year over year to $5 billion, and comps dipped by almost 3%. However, net income skyrocketed 160% to $125 million in the quarter.
