Target to Buy Avery Dennison Radio TagsMonday, April 3, 2017
Avery Dennison Inc. will supply Target Corp. with radio frequency identification tags as part of the mass retailer’s initiative to implement the technology at more than 1,600 stores.
Glendale-based Avery Dennison on Monday said Target plans to use the company’s line of ultra-high frequency RFID tags to identify items in Target’s home and apparel categories, among others. RFID technology uses radio waves to store information electronically in a label or tag, making it easier for sellers to track inventory.
“In the apparel industry, having an accurate picture of stock availability is an important driver for retailers to deliver an optimized omnichannel experience,” Bill Toney, vice president of RFID market development at Avery Dennison, said in a statement. “We are honored to be selected by Target as a key business partner for this initiative.”
Avery Dennison’s retail branding and information solutions division accounted for roughly a quarter of the company’s $1.5 billion in sales during fourth-quarter 2016, an increase of about 3 percent from the year prior, according to filings with the Securities and Exchange Commission. The manufacturer of labels and pressure-sensitive materials generated $6.1 billion in total sales last year and employs more than 25,000 workers worldwide.
Avery Dennison stock rose 37 cents, or less than 1 percent, on Monday to close at $80.97 on the New York Stock Exchange.