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NORTH AMERICA
Luxottica Group operates three leading optical and sun retail brands: LensCrafters, Pearle Vision and Sunglass Hut. In order to expand the potential of these brands, the Group continues to work on perfecting each brand’s positioning in its respective segments by emphasizing how each retail brand is uniquely positioned in the eyes of the consumer, thus improving their ability to more effectively serve the market. This process will be supported by continued major investments in the store base, both to improve the network and to make store formats more appealing for customers and the market.
LensCrafters
Further emphasis will be placed on a stylish and fashion-oriented shopping environment, where
consumers can find more premium products, fashion advice and the highest levels of service and
convenience. LensCrafters’ new store concept was launched in April 2006 and is producing
excellent results.
Pearle Vision
The longest-standing optical brand in the United States, Pearle Vision is again being perceived
by consumers as the brand of “trusted eyecare,” providing eye exams of the highest standards
and top-quality eyewear. Luxottica Group will further expand Pearle Vision’s high standard of
optical care and its relationship of trust with the consumer with the introduction of new
technology and advertising campaigns. Additional forms of communication will also be used to
enhance the appeal of the chain’s offerings in the eyes of the consumer. The Group firmly
believes that the Pearle Vision brand has significant growth opportunities in both the United States and Canada, where the brand was strengthened in 2006 and is now the only optical chain
represented throughout Canada.
Sunglass Hut
Luxottica Group will continue along the path it has followed in recent years. The strategy will be to
increase the percentage of fashion frames sold in stores, as such frames carry higher profit margins
and stronger appeal for female consumers who typically exhibit higher frequency purchase cycles.
The brand’s positioning will also be supported through the careful location of new stores and the
ongoing store remodeling plan that will have updated approximately 85% of in-line stores by the end
of 2008.
Licensed Brands (Sears Optical, Target Optical, BJ’s Optical)
The Group recently entered this segment and immediately became its most important operator. The
segment shows significant growth potential in both quality and volume. Luxottica Group is well
positioned to serve this market with its distribution and manufacturing structures.
Lens finishing labs
Combining its broad presence in the market with additional capacity for handling lens finishing work,
Luxottica Group anticipates increasing availability of its higher-margin lens treatments to consumers
at its stores. Lens finishing labs are also expected to contribute to a reduction of the time and cost
of finishing work provided by third parties.
Managed Vision Care: EyeMed Vision Care
EyeMed Vision Care is now the one of the largest managed vision care operator in the United States.
Its ability to serve the market has increased both from a geographical standpoint and in terms of
product offerings, making EyeMed Vision Care services even more appealing for corporations and
their employees, and resulting in an increase in the number of consumers using vision benefits both
at independent and Group stores.
ASIA-PACIFIC
In this increasingly important geographical region, the Group plans to:
- Improve results through continued optimization of the retail brand positioning in the Australia and New Zealand region, which over the last two years has reported significant growth;
- Build on the successful restructuring of Sunglass Hut’s business in the region and also explore entry into new markets;
- Build on the successful launch in September 2006 of the LensCrafters brand in China and further strengthen its business structure to achieve profitability in 2007; and
- Monitor markets in the region to identify further opportunities, including the Chinese market in the medium term.
OTHER MARKETS
The Group believes it has excellent opportunities in the sun segment, where it has the advantage of operating the only truly global brand, Sunglass Hut. In 2006, Luxottica Group announced Sunglass Hut stores (under franchise) would open in the Persian Gulf region. It plans to continue this expansion.
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