The loyalty program has been rolled out to nearly 70 stores across Arizona and is on track for nationwide completion by the end of October.
Early results show increased customer sign-ups, shopping frequency, and spending, with confidence in its potential to significantly benefit in 2026.
Management emphasized that the program will impact comps starting in 2026, with initial rollout in Q4 expected to influence customer behavior gradually.
Impact of New Prereed Insurance Provider Transition on Sales Production
SCI transitioned to a new preneed insurance provider in July 2024, which temporarily reduced SCI Direct's sales production by 14% or $10 million in Q2 2025.
Management expects comparable core preneed sales growth in the second half of 2025 as the transition stabilizes.
The transition involved extensive training, licensing, and payment term changes for sales counselors, contributing to short-term sales decline.
As of today, 95% of markets have completed the transition, with expectations of year-over-year growth in 2026.
Flowers Foods is actively transitioning its product portfolio to better align with evolving consumer preferences, acknowledging that this process will take time.
The company is responding to a challenging economic environment and shifting consumer trends, which have hampered recent results.
Management emphasizes that the transition is a long-term, generational shift in the category, requiring patience and strategic innovation.
Early progress in repositioning the portfolio gives management confidence in driving long-term growth despite short-term pressures.
The company is focusing on innovation, including new product lines like Dave's Killer Bread and Canyon Bakehouse, to address softness in traditional categories.
Flowers Foods plans to further innovate and introduce new products in upcoming quarters to accelerate the transition and capture consumer interest.
Accelerated Rollout of Green Apron Service and Technology Integration
Green Apron Service to be fully scaled across all U.S. company-operated stores by mid-August, ahead of initial schedule.
Early pilot results show significant improvements in transaction times, customer service, and full-day sales performance.
Implementation includes new staffing models, SmartQ order sequencing technology, and a new performance report ('grow report') to enhance operational focus and store performance.
The rapid deployment aims to build a stronger operational foundation to support future innovation and customer experience enhancements.
Dafinchi
