Virtual shopper

Retail giant Walmart has forged a partnership with OpenAI that will allow users to shop for and purchase products through ChatGPT’s Instant Checkout feature. This comes as retailers race to implement “agentic shopping”—­purchases assisted by AI agents to enhance customer experience.

ChatGPT launched the Instant Checkout tool just weeks before Walmart’s Oct. 14 announcement. Here’s how it works: ChatGPT users can ask for product recommendations such as “fitness watches,” and the chatbot will list relevant items. If the item comes from a merchant that has partnered with OpenAI, users can enter payment information and complete their purchase without leaving the chat.

According to a press release from ChatGPT, the chatbot acts “just like a digital personal shopper.” Etsy storefronts were the first to sell through ChatGPT, though Shopify merchants like Vuori will reportedly follow.

For now, the feature only supports single-item purchases, and when buying from Walmart, shoppers won’t initially be able to purchase fresh grocery items. The retail giant didn’t specify when the shopbot rollout would be complete but said the change would come “soon.”

“For many years now, eCommerce shopping experiences have consisted of a search bar and a long list of item responses. That is about to change,” said Walmart President and CEO Doug McMillon.

The ChatGPT partnership is not Walmart’s first AI agent venture. In June, it launched its in-app AI assistant Sparky, which synthesizes reviews and offers product suggestions based on user queries.

More than 40% of retailers have launched AI agents. Last year, Amazon launched Rufus, “a conversational shopping assistant.” In October, the online retailer rolled out a Help Me Decide feature that provides recommendations for shoppers who have looked at similar products but haven’t made a purchase.

About 70% of consumers say they would appreciate the guidance of AI agents while shopping. Still, agentic shopping has its limitations, according to research from management consulting firm McKinsey & Co.: “A single faulty prompt can trigger a cascade of unintended consequences,” including accidental purchases or a flight booked for the wrong time.

Retail revival?

Toys“R”Us hopes once again to make a comeback, this time ahead of the holidays. On Oct. 16, the retailer said it would open eight permanent flagship stores and 20 pop-up shops in time for Christmas. The brand filed for bankruptcy in 2017 and closed hundreds of stores. Since then, the company has made several attempts at reclaiming its former retail status. In 2022, it opened more than 400 toy shops inside Macy’s department stores. The following year, the company opened a flagship store at the Mall of America. Under the leadership of WHP Global, which acquired Toys“R”Us in 2021, the new rollout comes in partnership with toy store operator Go! Retail Group. According to a press release, “this expansion marks a significant milestone in the brand’s growth.” —B.M.