Lines and Ladders: A Context-Aware Multi-Agent Framework for Large-Scale Retail Price Taxonomy
TL;DR
A scalable, context-aware Multi-Agent Framework designed to automate the construction of "Lines and Ladders" pricing taxonomies, which achieves 90% precision and 75% recall in Food&Consumables, and 80.2% assignment accuracy in the unstructured General Merchandise catalog.
Abstract
Maintaining price consistency and executing an Every Day Low Price strategy is critical for global retailers. However, with catalogs spanning millions of active items, manual governance of price relationships is infeasible. Inconsistent pricing across item variants distorts customer value perception and cannibalizes sales. To address this, we present a scalable, context-aware Multi-Agent Framework designed to automate the construction of"Lines and Ladders"pricing taxonomies. Our framework employs specialized LLM agents to construct these coherent pricing structures by identifying key attributes, extracting multi-modal values, and applying hierarchical grouping logic. Evaluated on real-world enterprise data and deployed in production, our 3-Agent system achieves an F1-score of 0.83 for Lines, outperforming single-agent baselines by mitigating cognitive overload. The system achieves>90% precision and>75% recall in Food&Consumables, and 80.2% assignment accuracy in the unstructured General Merchandise catalog.