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Avery Dennison Teams with Verifone

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Retail Branding and Information Solutions (:RBIS), a segment of Avery Dennison Corporation (AVY), recently joined forces with VeriFone Systems, Inc. (PAY) to provide retailers with the GlobalBay Retailing solution and ensuring the most productive and accurate markdown solution to date.

Through the Avery Dennison and VeriFone partnership, retailers can add price markdown capabilities into their existing smart device systems quickly and easily. The complete Avery Dennison Markdown solution includes its recently launched application - the Pathfinder 6140, markdown labels from Avery Dennison, as well as integration and support from both Avery Dennison and VeriFone.

Avery’s Pathfinder 6140 is 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 missed. 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 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 is available on Apple (AAPL), Microsoft (MSFT) Windows and Google (GOOG) 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.

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 Bemis Company, Inc. (BMS) and 3M Company (MMM).

Avery’s adjusted earnings increased 50% year over year to 54 cents per share in fourth-quarter 2012 and revenues rose 5% year over year to $1.5 billion. Both were ahead of the respective Zacks Consensus Estimates. Net sales grew approximately 7% on an organic basis, the strongest organic growth witnessed since the first quarter of 2011. The organic growth momentum is expected to continue in 2013 as well.

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 #2 (Buy). Another stock to consider in the same industry with a favorable Zacks Rank is United Stationers Inc. (USTR) with a Zacks Rank #2.

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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