Macy’s Personalising AI Bot Drives Basket Values Inside a Few Weeks

Why It Matters

The chatbot dramatically lifts per‑visit spend, giving Macy’s a scalable tool to counter high online cart‑abandonment rates and strengthen its digital revenue stream amid store closures.

Key Takeaways

• Ask Macy’s boosts revenue per visit by 4.75× in beta
• Chatbot scans full catalogue, asks preference questions
• Virtual try‑on overlays items on shopper’s uploaded photo
• Macy’s projects 1.2% sales growth for 2026

Pulse Analysis

Macy’s rapid deployment of an AI shopping assistant underscores how legacy retailers are turning to generative AI to stay competitive. By partnering with Google Cloud and adopting Gemini Enterprise, the department store cut development time dramatically, sidestepping internal bottlenecks that traditionally slow innovation. The bot’s ability to interrogate the entire product catalog and personalize recommendations in real time reflects a broader shift toward hyper‑personalized e‑commerce experiences that blend conversational interfaces with visual try‑on technology.

The early performance data is striking: a 4.75‑fold increase in revenue per visit during beta suggests that shoppers are willing to spend more when guided by an intelligent assistant. While the tool does not directly lower the industry‑average 70% cart‑abandonment rate, it reduces friction by keeping users engaged longer and surfacing relevant items faster. Features such as color, cut, and fabric queries, plus the virtual try‑on that places garments on a user’s photo in various settings, create a more immersive decision‑making process that mimics in‑store assistance.

Strategically, the AI bot aligns with Macy’s broader transformation agenda, which includes closing underperforming stores while expanding high‑traffic locations. The projected 1.2% sales growth for 2026, though modest, signals that digital initiatives like Ask Macy’s are becoming integral to the company’s revenue mix. As competitors accelerate their own AI investments, Macy’s early mover advantage in conversational retail could set a new benchmark for how traditional department stores leverage technology to drive online spend and enhance brand relevance.