Retail Product Search: A Practical Approach at Target

Traditional search systems are optimized to retrieve items that strictly match a query, often prioritizing precision over recall. In e-commerce marketplaces and particularly grocery, this paradigm is limiting, as user satisfaction and commercial outcomes depend heavily on the discoverability of substitute, complementary, and thematically related items. In this paper, we present a scalable system for discovery-augmented search that leverages intent-conditioned recall expansion. Our approach generates implicit user intents to expand candidate recall while maintaining relevance. The system addresses the cost-quality tradeoff of generative retrieval through a two-stage hybrid architecture. First, we leverage closed-weight large language models (LLMs) to maximize discoverability for head queries. To extend these benefits to tail queries, we then introduce a finetuned small language model (SLM), trained via LoRA adapters and teacher-student distillation. We evaluate the system using a rigorous dual framework: (a) LLM-as-a-judge metrics validated against human preferences for semantic quality, and (b) end-to-end session-level purchase analysis. Results demonstrate that our approach improves both intent generation quality and downstream retrieval effectiveness, extending discovery coverage from approximately 60% to 80% of query traffic at roughly 30% of the teacher model's inference cost, offering a viable path for deployment in large-scale marketplaces. Beyond relevance gains, discovery-augmented search may serve as a marketplace-balancing mechanism, giving long-tail and emerging supply an opportunity for query-conditioned exposure.

Semantic retrieval in e-commerce must handle short, noisy, and colloquial queries over large product catalogs with fine-grained attribute distinctions. We present a Siamese LLM dual-encoder trained through a two-stage pipeline: contrastive learning with a false-negative margin mask to prevent penalization of near-duplicate products, followed by Relative Odds Alignment for Retrieval (ROAR), a preference optimization objective that extends Bradley-Terry to variable-sized graded relevance groups via consecutive odds-ratio margins. The training corpus mirrors this progression - substitute query-product pairs provide coarse semantic supervision in Stage 1 and graded relevance annotations drive fine-grained ranking in Stage 2. The resulting system accurately retrieves exact matches while correctly ordering substitutes and complementary products, with gains confirmed across query-frequency strata and business verticals, and statistical significance validated through live A/B deployment at scale.

Multi-merchant e-commerce catalogs contain equivalent and related products under different merchant-scoped identifiers, fragmenting behavioral evidence across merchants. Expert-defined taxonomies, meanwhile, are often too coarse for fine-grained discovery. We investigate whether a single hierarchical Semantic ID (\sid{}) representation can support personalized ranking and query reformulation. Learned once from product-content embeddings, the hierarchy defines product concepts at multiple granularities that each application combines with its own behavioral and serving context. For ranking, we aggregate consumer affinity and product performance over \sid{} prefixes and derive sequence features for candidate products and consumer histories. Controlled ablations show improved offline relevance, while online evaluation of the full ranking treatment shows stronger top-slot add-to-cart engagement and broader exposure for less-popular products. For query reformulation, we ground queries and session transitions in \sid{} concepts, use the hierarchy for navigation and refinement, and filter suggestions against the merchant's assortment. Offline evaluation shows finer intent preservation than taxonomy and higher-quality suggestions than raw query-string transitions; online evaluation shows reduced search effort and earlier access to purchasable products. These results show that a shared semantic product hierarchy can support both recommendation and search while preserving the task-specific context required by each application.