LensCrafters 2003 Annual Report Download - page 26

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wholly-owned subsidiaries: U.S., Canada, Italy, France, Spain, Portugal, Sweden,
Germany, United Kingdom, Brazil, Switzerland, Mexico, Belgium,
Argentina, South Africa, Finland, Austria, Norway, Japan
and Australia
75%-owned subsidiaries: Israel and Poland
70%-owned subsidiary: Greece
51%-owned subsidiaries: Netherlands, Turkey and Singapore
49%-owned subsidiary: Arab Emirates
44%-owned subsidiary: India
Luxottica Group’s Retail Division operates 3,382 retail stores in the U.S., Canada, Australia, New Zealand,
Southeast Asia and Europe across three brands: LensCrafters in North America; Sunglass Hut International in North
America, Australia and select European markets; and, OPSM in Australia, New Zealand and Southeast Asia.
LensCrafters stores provide efficient one-hour service to customers. Stores include a laboratory and an affiliated
licensed optometrist on site, allowing most customers to have eye examination, select from a large range of
prescription frames, sunglasses and lenses, and receive the selected frame, with prescription lenses, all in one hour.
Sunglass Hut International, the largest sunglass specialty retailer in the world, is a trend-setting chain that carries
all the leading brands and the latest sunglass collections.
OPSM Group is the leading optical retailer in Australia, with three brands - OPSM, Laubman & Pank and Budget
Eyewear – each targeting a clearly defined market segment. It is also the market leader in New Zealand, and has a
presence in other markets in Southeast Asia. As of December 31, 2003, OPSM operated 600 stores and employed
nearly 4,000 people.
OPSM stores, through their associated optometrists, provide a high standard of professional eye care and the
wide range of frames, lenses and sunglasses in-store, ensures customers have the best choice in eyewear.
Luxottica Group’s primary wholesale customers include retailers of mid- and premium-priced eyewear, such as
independent opticians, optical and sunglass chains, optical superstores, sunglass specialty stores and duty-free
shops. In certain countries, and especially in North America, wholesale customers also include optometrists and
ophthalmologists, health maintenance organizations (HMOs) and department stores.
Luxottica Group employs approximately 38,000 people worldwide.
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A BRIEF HISTORY
Founded in 1961, since its early stages Luxottica Group based its success on a strategy of full vertical integration,
whereby it exercises direct control over all significant components of the eyewear production and distribution process,
including design, production and worldwide distribution both to wholesale customers and to a large number of end-
consumers through its retail division.
Since the mid-90’s, the Group has entered a new phase of growth through a series of acquisitions, expanding its
market share both in the retail business and in the sun segment. It has also significantly strengthened its portfolio by
acquiring prestigious sun brands.
Key events:
• In 1995, Luxottica Group acquires LensCrafters, the largest retail optical chain in North America. This step allows
the Group to establish itself as the leading player in the medium- to premium-price segments in one of the world’s
most important retail markets for eyewear.
• In 1999, Luxottica Group acquires the Eyewear division of Bausch & Lomb, adding to its existing portfolio some of
the world’s most prestigious sun brands: Ray-Ban, Revo, Arnette and Killer Loop. Through this acquisition, the
Group also secured important sunglass crystal lens manufacturing know-how, technology and production capacity.
• In 2001, Luxottica Group acquires Sunglass Hut International, a leading specialty sunglass retailer with 1633 stores
in North America and an important presence in Australia.
Following the Ray-Ban and Sunglass Hut International acquisitions, Luxottica Group has completed an aggressive
reorganization of the businesses acquired, integrating and improving its operations to take advantage of the synergies
thus created.
In September 2003, Luxottica Group acquired OPSM Group, the leading eyewear retailer in the prescription
segment in Australia with approximately 460 stores. OPSM also operates stores in New Zealand and has a presence
in Southeast Asia with stores in Hong Kong, Singapore and Malaysia.