Target is testing its AI Trend Brain tool to help apparel teams identify fashion trends and adjust product decisions more quickly. The tool was introduced earlier this spring and is being rolled out to designers working on Target’s own brands, including Wild Fable and Universal Thread.
It uses inputs like social media content, runway images, and purchasing trends to help the retailer assess where fashion demand may be heading. Target has been using Trend Brain in apparel, including swimwear, a category where the company wants to maintain its market share. Gena Fox, Target’s head of apparel, said the company applied a digital-first model ahead of the summer swim season. Here, the model was used to read silhouettes, print patterns, and broader swimwear trends.
According to Fox, the system helped Target move selected designs online quickly so they could be shipped directly to customers and supported buying decisions by identifying stronger-performing styles before the season began.
One example was a polka dot design that the tool flagged early. Fox said Target was able to buy more of that design while reducing its exposure to styles that were not performing as well.
Target cites inventory forecasting risks
In its 2025 annual report, Target said effective inventory management depends on demand forecasting and replenishment management and that it plans inventory levels for seasonal and apparel items to minimise markdowns.
It identified owned-brand demand forecasting as a business risk. In its annual report, the company said inaccurate demand predictions for owned-brand products have previously affected inventory decisions, and similar issues may lead to insufficient or excess inventory, markdowns, and higher costs.
Shortening parts of the product cycle
The company combines AI-assisted trend identification, smaller production runs, and direct-to-consumer shipping, shortening parts of the product development cycle from several months to a few weeks.
Products that show stronger performance through this process can then be considered for broader retail distribution. The tool is not yet used in all design teams, and Target still relies on its standard product development process for most categories.
Target says designers still research trends
Trend Brain is part of Target’s wider use of AI under CEO Michael Fiddelke, who has pointed to technology as an area of focus for the company. In its latest earnings release, Target said its priorities include strengthening merchandising, improving the shopping experience, and advancing its use of technology.
Target reported a weaker sales performance in its latest fiscal year, with full-year 2025 net sales of US$104.8 billion, down 1.7% from US$106.6 billion a year earlier. Comparable sales for the year fell 2.6%.
Target also reported weaker fourth-quarter results. Net sales fell 1.5% to US$30.5 billion, and comparable sales declined 2.5%. Store-originated comparable sales fell 3.9%. Digitally originated comparable sales rose 1.9%.
(Photo by Salonagility.com Daniel)
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