Co.'s Digital Labels Deployed at Building Goods Store
Source: Streetwise Reports
May 5, 2023 (Investorideas.com Newswire) Micro e-paper display and software provider Danavation Technologies Corp. says its Digital Smart Labels™ are being deployed at a Timber Mart location in Ontario.
Micro e-paper display and software provider Danavation Technologies Corp. (DVN:CSE; DVNCF:OTCQB) announced its Digital Smart Labels™ are being deployed at a Timber Mart location in Ontario.
Timber Mart bills itself as the "largest national member-owned buying group in Canada for the true independent entrepreneur."
It has hundreds of members, including independent building material and hardware retailers, commercial dealers, and manufacturers across Canada.
The Digital Smart Labels™ will be installed throughout the Earlton Timber Mart location, which is locally owned and family-operated.
Danavation will be "working with management of this store to alleviate the inefficient and costly process of manually updating product labels in the store," said John Ricci, Danavation's chief executive officer.
Digital Smart Labels™ enable companies to automate labeling and price and product promotions in real-time, significantly reducing paper usage in the process.
"We believe that technology should make life easier, not more complicated," Danavation Chief Executive Officer John Ricci said.
Danavation's Digital Smart Labels™ are powered by proprietary automation technology and an underlying Platform-as-a-Service (PaaS) model. The company said using the technology enhances data accuracy and improves performance by optimizing inventory and removing the high labor costs and low productivity traditionally associated with labor-intensive merchandising workflows.
The company has introduced its solution to retailers across North America, including True Value and Ace Hardware. It also said it's targeting new markets, including healthcare providers, manufacturing, and logistics companies.
In November, technical analyst Clive Maund of CliveMaund.com wrote that the stock was "at a great entry point" and had "plenty of upside potential from here."
The Catalyst: Market Share, Exposure
The Timber Mart installation, expected to be finished in August, will enable Danavation to gain further market share in the building and hardware retail segment and showcase the benefits of Digital Smart Labels™ to hundreds of potential customers, the company said.
The company also recently entered into a tentative agreement to provide the labels to Peavey Mart locations across Canada.
Peavey Mart is a farm and ranch retailer offering agricultural, pet, lawn and garden, and hardware supplies for those with a "down-to-earth rural lifestyle," according to its website. It operates 94 locations from British Columbia to Nova Scotia.
The technology will initially be tested at two Peavey Mart locations in Red Deer, Alberta, and London, Ontario.
Danavation is also partnering with U.S.-based liquor store chain Macadoodles, which has stores across Arkansas and Missouri. The company decided to work with Danavation after the first successful implementation of the technology.
Digital Smart Labels™ offer high-resolution, high contrast, wide viewability, and vibrant color displays for price labels. The displays, which allow for both text and graphics, are housed in durable and strong polycarbonate housing.
Internet of Things Devices Poised for Growth
Internet of Things (IoT) devices like Digital Smart Labels™ appear to be poised for growth. According to a report from Mordor Intelligence, "the IoT market is expected to register a CAGR of 10.53% during the forecast period (2022-2027)."
"Enterprises and service providers have been looking at IoT as the key enabler to augment digital transformation and unlock operational efficiencies," the report said.
The global retail automation market - which also includes electronic shelf labels - was valued at nearly US$15 billion in 2021 and is predicted to reach US$34.5 billion by 2030 with a compound annual growth rate (CAGR) of 9.8%, according to a report by Straits Research.
"Retail automation is gaining high traction and expanding at a rapid rate," the report said. "The need to provide exquisite shopping experiences that can help retailers increase customer retention is fueling the need to adapt to ongoing digitalization strategies such as automation. Thus, integrating technologies with smart devices has witnessed high growth in the retail industry."
Increased margin pressure is leading retailers to choose solutions that will set them apart from the competition, according to the report.
"The growth of global e-commerce has had a favorable effect on the retail automation sector," it said.
Automation can "reshape retail business models and provide value chain opportunities for players operating in the market," Allied Market Research wrote.
Ownership and Share Structure
Management owns roughly 36% of the share base. The company reports no institutional owners. Strategic investor T. Sean Harvey holds 11.66% or 13.31 million shares, Independent Director Vivek Jain owns 0.13% or 150,000 shares, and Independent Director Michael Della Fortuna owns 0.03% or 30,000 shares, according to Reuters.
Danavation has a market cap of about CA$20.9 million with about 119.17 million shares outstanding. It trades in a 52-week range of CA$0.325 and CA$0.13.
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