LensCrafters 2005 Annual Report Download - page 19

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> 18 | ANNUAL REPORT 2005
additional stores but also seven central labs, which, added to LensCrafters’ in-store labs, form one of
the largest lens finishing lab networks in North America. Lastly, with the integration of Cole National
Managed Vision Care into EyeMed Vision Care, Luxottica Group became the second most important
administrator of managed vision care programs for U.S. corporations, government agencies and health
insurance providers. In 2005, management at the Group level and from the retail division focused on the
integration of the Cole National businesses, which was successfully completed during the year as
reflected in the results of the final quarter of the year, especially for Pearle Vision. At the same time, in
North America the retail division continued to post results above average for the premium retail sector,
thanks to excellent performance by the other brands. This is proof of the ability of the Group’s retail
organization to manage a complex integration process vital to the future (such as the Cole National
acquisition) while remaining focused on growth and driving home results in North America, one of the
world’s most important eyewear market. LensCrafters, in fact, posted comparable store sales up for the
year 7.2%, as a result of the focus on ongoing improvement of the store base, customer service and
product mix. Sunglass Hut, in turn, saw comparable store sales up by nearly 14% thanks to an excellent
performance during what is only the initial phase of the brand’s repositioning as leader in fashion and
luxury in the sun market in North America.
In Asia-Pacific, the Group continued to consolidate its retail presence. 2005 saw the completion of the
tender offer for the remaining outstanding shares in OPSM Group, whose retail brands, now under a
single Luxottica Asia-Pacific retail division, hold leading market shares in Australia, New Zealand and
Hong Kong. This division posted solid results, especially in the optical segment, mainly in connection
with the relaunch of the OPSM retail brand. Regarding the future, the work done in the region in 2005,
from the positioning of the various retail brands the Group operates to investments in the store base,
has paved the way for good results in 2006 and beyond.
Another important event for the retail business in 2005, and for the Group as a whole, was the entry into
the Chinese eyewear market through the acquisition of the Xueliang Optical and Ming Long Optical
retail chains. With the addition of the two new chains and the stores the Group already controlled in
Hong Kong, Luxottica Group today manages the largest premium optical retail chain in China. In 2005,
the Asia-Pacific retail team implemented a major repositioning of the stores in Hong Kong towards the
premium and luxury segments, introducing a new format and focusing on improvements in the product
mix by drawing increasingly on Luxottica Group brands and expertise.