Thanks for responding to my question on Pilots (maybe Kroger and AD just haven’t declared things clearly enough). References to IL = intelligent label or RFID
From Avery Dennison Q2 Earnings Transcript
Dean Sander -
And in particular, the rollouts that we had assumed as we went through this year are on track. Some of those rollouts in food and logistics, particularly in food, include also new customers as they go from pilot stage to roll out as well. And the results that we're seeing particularly in food, from an ROI perspective, are exceeding both the existing customers and some of our pilot customers' expectation. This gives us confidence in the fact that we're going to continue to see adoption as we go through the second half of the year into the start of 'twenty five. '26. Apologies.
I anticipate all things being equal, there's no further deterioration. We should see growth in IL in the third quarter. Then in the fourth quarter, expect to see some of those new programs or the rollout that we're seeing take traction in the fourth quarter as well.
Yeah. Mike, I'm I'm not necessarily comment on specifically the reasons why some of our customers do what they do. I think for me, that's just a normalization of the way they look at their real estate footprint. What I will say is our rollout with Kroger continues to be as expected. They're up to round about 700 stores now. Midpoint of the year in terms of rollout. And recall, I think we said that it would take probably about a year or two sorry, year and a half or so to sort of get to full rollout. That was just on the bakery item.
We're actually in the process discussion with that customer specifically around given the returns that they've seen as being as strong as they are, the ROI how do we accelerate into some of the other categories we historically plan to including things like proteins and so forth as we move forward. |
