Why did Target (TGT) stock price go up $2.75 today? Why did Target (TGT) stock price go up $2.75 today?

Target’s stock price rose nearly 2%, or $2.75, following a pair of major news announcements from the company today and last Friday.

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The TGT stock price closed at $143.38 on Friday, June 21, and rose to $146.69 in premarket trading today, June 24, as of this article’s press time.

New Shopify partnership

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Today, the super retail chain announced that it will partner with multinational online commerce platform Shopify.

Select Shopify products will now be available on Target Plus, the retailer’s third-party online marketplace, including some of Shopify’s best-known brands.

The move is apparently to expand the retail chain’s e-commerce reach, as Target commented on the announcement that “new partnership with Shopify will expand Target Plus through a select assortment of new and on-trend products and brands like True Classic, Caden Lane and more.”

The price of Shopify shares is also rising

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Shopify (NYSE: SHOP) is one of the most successful online e-commerce platforms in the world, with a market capitalization of $83.80 billion.

It too saw its share price rise nearly 2% ($1.15) today.

This makes sense, as the news also marks Shopify’s first foray into the world of physical retail, and TGT also announced that “Target will be the first mass-market retailer to partner with Shopify to carry products from select merchants in its stores physical in the months to come.”

The target jumps on the AI ​​bandwagon

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But that’s not the only news that’s come out of Target lately.

The company also announced late last week that it will launch a new generative AI tool for its internal team members across all of its nearly 2,000 U.S. stores by August.

The tool, called Store Companion, will be a GenAI-powered chatbot designed by Target that can answer work process questions for store staff, train new team members, support store operations management and more.

By doing so, Target is “becoming the first major retailer to share that it is bringing this technology to team members at its U.S. stores,” in the brand’s words.

The initiative is part of Target’s broader strategic approach to using GenAI across its business to empower its team, improve the guest experience and support the company’s long-term growth.

A new strategy that integrates artificial intelligence

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Target employees can take comfort in the fact that the company aims to use the power of AI to complement, rather than replace, the company’s human capital.

“Generative AI is a revolutionary technology, and Store Companion will simplify daily tasks and enable our team to respond to guest requests with confidence and efficiency,” said Mark Schindele, executive vice president and chief store officer at Target.

“The transformative nature of GenAI is helping us accelerate the rate of innovation across our operations, and we are excited about the role these new tools and applications will play in driving growth,” added Brett Craig, executive vice president and chief information officer at Target.