Key Takeaways:
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Galeries Lafayette achieved a 7% total revenue increase and an 8% rise in average basket value by replatforming its legacy search and recommendation stack with Google Vertex AI Search for Commerce and Grid Dynamics’ proprietary Merchandising Experience Platform (MXP).
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The solution successfully modernized a complex catalog of over 600,000 products—including 350,000 from third-party marketplaces—contributing to a 20% year-over-year increase in online sales.
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This successful program showcases Grid Dynamics’ expertise in bridging the gap between advanced AI models and measurable retail profitability for global enterprises.
Grid Dynamics Holdings, Inc. (“Grid Dynamics”), a premier AI transformation partner for the Fortune 1000, announced the successful deployment of a hyper-personalized digital shopping experience for Galeries Lafayette, the iconic French department store. By integrating Google Vertex AI Search for Commerce with the proprietary Grid Dynamics Merchandising Experience Platform (MXP), the retailer has modernized its search, navigation, and recommendation engines across its web, client, and seller applications.
The initiative addressed significant challenges posed by a legacy search stack that struggled to manage a vast catalog of 600,000 products, including 350,000 from third-party marketplaces. This complexity often led to poor search relevance and high manual workloads for merchandising teams. The new platform provides a tailor-made experience for each visitor, leveraging real-time data ingestion to ensure accurate product availability and pricing. During peak commercial operations, the platform maintained rock-solid stability, achieving:
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- 7% total revenue increase
- 8% rise in average basket value
- 20% year-over-year increase in online sales
- Measurable gains in search conversion, recommendation-driven revenue, and merchandising efficiency.
“The tests conducted this summer demonstrated significant benefits on all of our business and product KPIs, confirming the relevance of this technological choice for our hyper-personalization strategy,” said Lucas Serralta, Chief Product Officer at Galeries Lafayette. “Beyond this deployment, this platform paves the way for many innovations, such as the development of intelligent agents capable of enhancing the online and in-store shopping experience.”
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“Our work with Galeries Lafayette is a marquee example of how we bridge the gap between sophisticated AI models and real-world retail profitability,” said Yury Gryzlov, COO and Head of Europe at Grid Dynamics. “By combining Google’s powerful search capabilities with our MXP’s precise merchandising controls, we’ve empowered one of the world’s most iconic brands to turn complex data into seamless, high-conversion customer journeys at scale.”
Watch a video case study on this collaboration to learn how Grid Dynamics drives measurable enterprise value through AI-powered search and merchandising solutions.
