Avery Dennison Corporation’s ( AVY) segment, Retail Branding and Information Solutions (:RBIS) has introduced the Pathfinder 6140; a major breakthrough in the line of one-piece scan, print and apply price marking solutions. Powered by real-time intelligence from smart devices, Pathfinder 6140 will help drive sales and save labor cost at retailers by ensuring more effective markdowns.
Effective execution in the markdown process is critical as the customers should be able to see the offer at the right time and sales are dependent on giving the customer a good deal. Under the traditional red pen markdown process, normally used by retailers, store associates can mark three garments per minute. With about 63% accuracy, over one-third of items are mismarked. This affects sales as a potential customer is unable to see the offered deal at the right time. Furthermore, the merchandising team is unable to monitor the timing and execution of the markdown process.
The Pathfinder 6140, created in the Avery Dennison Customer Design and Innovation Centers (:CDIC), solves the above mentioned issues. It is the fastest, lightweight and cost-efficient way to do item-level markdowns. Weighing 27.2 ounces, it can be held with one hand. At a go, the store associate can scan the bar code on the price ticket and apply a new price label that matches the new price for the item. Around 15 garments can be scanned and marked per minute with nearly 100% accuracy.
Avery Dennison's Pathfinder 6140 price management solution includes a fully-featured smart device markdown application, created through a new partnership with VeriFone GlobalBay. The Avery Dennison GlobalBay application is user friendly and will operate on Apple, Windows, and Android platforms. It provides retail management executives with full dashboard reporting capabilities, providing feedback on markdown execution and productivity. The Pathfinder 6140 hardware has been certified under the Apple MFi program as has been done for iPhone, iPad and iPhone, and is also compatible with Android and Windows CE/Mobile operating systems. It is now available in Europe and North America.
The price management application of the Pathfinder 6140 records the activity, enabling the central merchandising team to confirm that markdowns were completed on time. They can adjust labor planning based on actual productivity.
The Pathfinder 6140 will help improve margins and operating efficiencies across the end-to-end supply chain. Further, displaying the markdown price correctly has proven to boost sales. Using a scan, print and apply handheld has proved to be more efficacious in generating over 5% higher sales versus traditional price marking methods during the markdown period. The Pathfinder 6140 will thus help boost revenues and bottom line of retailers and provide an edge to Avery Dennison over its competitors.
In the third quarter, Avery Dennison witnessed 77% annual growth in its adjusted earnings to 53 cents per share, comfortably beating the Zacks Consensus Estimate of 45 cents. Revenues dipped 0.8% year-over-year to $1.49 billion but were ahead of the Zacks Consensus Estimate of $1.487 billion. However, net sales increased approximately 6% on an organic basis, the strongest organic growth since the first quarter of 2011. Higher volumes for pressure sensitive materials and a rebound in the core business of retail branding and information solutions led to the increase. Sales of label and packaging materials grew in every region, with the emerging markets growing in the double-digit range.
Avery’s restructuring initiatives are expected to deliver annualized savings of more than $100 million in 2013. Furthermore, with the divestiture of the underperforming Office and Consumer Products unit, the company will be able to focus on its market-leading, pressure-sensitive materials business, and Retail Branding and Information Solutions segment.
Pasadena, California-based Avery Dennison manufactures pressure-sensitive materials, and tickets, tags, labels other converted products. Avery has over 200 manufacturing and distribution facilities encompassing more than 60 countries. Its products are sold under the Avery, Avery Dennison, Avery Graphics and Fasson brands. Its clientele is spread across the U.S., Europe, Asia, Latin America and other regions. Avery currently retains a short-term Zacks Rank #3 (Hold). Other Zacks Rank #3 ranked stocks in the same industry are ACCO Brands Corporation ( ACCO) and CompX International Inc. ( CIX).
Avery Dennison’s RBIS segment is a global leader in apparel and footwear industry solutions. It provides intelligent, creative and sustainable solutions to elevate brands and speed up performance from design to retail store floor. The company’s industry leading, end-to-end solutions include innovative heat transfer technology, RFID and price management supply chain solutions and sustainable packaging services.
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