LensCrafters 2004 Annual Report Download - page 21

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DISTRIBUTION
20
As for the performance of other markets, in 2004
Luxottica Group moved to gain control of 100% of the
share capital of OPSM Group. The full integration of
this group is especially significant, in that the markets
of Australia, New Zealand and South-East Asia,
where Luxottica Group can now enjoy a position of
leadership, offer important opportunities for growth.
In North America Luxottica Group also manages the
Watch Station, Watch World and Things Remembered
chains. Watch Station and Watch World stores operate
within the Sunglass Hut chain and offer a product,
watches, which is highly complementary to
sunglasses.
Things Remembered, acquired with Cole National, is
one of the leading specialty gift retailers in the U.S.; it
is controlled by Luxottica Group’s North American retail
division but it is independently managed since its
business is non-core.
LUXOTTICA RETAIL NORTH AMERICA
LENSCRAFTERS
Luxottica Group acquired the North American optical
chain LensCrafters in 1995 entering the retail market
for the first time, an important and significant
undertaking for the Group. In the space of a few years,
this has proven a highly successful strategy as it
allowed the Group to benefit from high growth rates
and increasingly more efficient penetration of the
market by its retail division.
LensCrafters was the first U.S. optical chain to offer at
its stores a vast array of premium eyewear, an
optometrist and an in-house lab. LensCrafters built its
reputation on the customer promise of eyeglasses in
about one hour. Today, at LensCrafters stores
customers enjoy a vast array of fashion frames, state-
of-the-art lens technology, and knowledgeable, high
quality service.
With a large portion of its customers extremely attuned
to fashion and demanding efficient and top quality
service, LensCrafters’ strategy focuses especially on
high-end products and customer care. In this
atmosphere, last year LensCrafters launched a sales
leadership model in which associates are trained to
develop strong consultative and selling skills. Results
from this program have been extremely positive, with
87.4% of customers rating services received from very
good to excellent.
Regarding products sold, Luxottica Group’s house,
license and private label brands represented
approximately 70% of units sold. Among the most
popular were Adrienne Vittadini, Anne Klein, Brooks
Brothers, Ray-Ban and Vogue. In keeping with the
latest technological advancements in lenses,
FeatherWates Colors by Transitions were exclusively
launched at LensCrafters stores.
The labs within LensCrafters stores are a strong
benefit for customers; for this reason, Luxottica Group
intends to continue its involvement in research into the
latest innovations, so that LensCrafters maintains its
reputation for state-of-the-art technology.
As for marketing, LensCrafters appeared in the
principal North America television networks and large
distribution magazines, with the “Inspired Confidence”
campaign, created specifically to reinforce consumer
confidence in the LensCrafters brand. Within this
campaign, launched in 2004 is “Total Recall”, which
allows patients to receive an eye exam reminder one
year after their last optometry visit, a message
reminding them of their next appointment. The
program should show its first results in 2005.
LensCrafters operates 888 stores in the U.S. and
Canada.
PEARLE VISION
In October of 2004 Luxottica Group closed the
acquisition of Cole National which included Pearle
Vision, thus making a decisive step in consolidating its
leadership in the premium optical market in the U.S.,
now served by Pearle Vision and LensCrafters in a
complementary fashion.
Pearle Vision has been present in the U.S. market for
over 40 years and represents in the eyes of most
consumers the brand for excellence for those who
take care of their vision needs with the highest quality
eyewear. Pearle Vision stores were the first in 1961 to
marry optical care with vast selection of frames.
Today Pearle Vision is one of the best known brands in
the U.S., synonymous with a trustworthy optometrist
and personalized care. The brand operates 843
stores, company-owned and in franchising. With
Pearle Vision, for the first time, Luxottica Group, in