Source: Fortune
Summary
Macy’s has launched its “Ask Macy’s” AI chatbot, powered by Google’s Gemini AI assistant, which has seen surprising success. Shoppers who use the chatbot spend about 4.75 times more than those who don’t. The chatbot was tested with about half of Macy’s website visitors over several weeks and is now available across all digital platforms. Macy’s reported a 2.4% decrease in net sales last year but returned to comparable sales growth. The company expects to make $21.4 billion to $21.65 billion in net sales this year.
Our Reading
The numbers tell one story.
Macy’s is trying to make a comeback after a decade of declining sales, and its AI chatbot is showing promise. The chatbot’s success is attributed to its ability to suggest accessories and offer a virtual try-on feature. Chief Customer and Digital Officer Max Magni suspects that the bot is also attracting a younger customer base. The bot’s tone has been tweaked to be more friendly and personalized.
The bot’s success is a sign that Macy’s is trying to “complete the look” for its customers, but it’s still a long way from cracking the code. As Magni said, “Every retailer is trying to figure it out one step at a time. This is anybody’s game. Nobody has cracked the code.”
Author: Evan Null
