LensCrafters 2005 Annual Report Download - page 30

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young, active and fashion-conscious image. Following its acquisition by Luxottica Group in 2001, the
brand invested strongly in these characteristics and increased its focus on fashion eyewear by keeping
its product offering more closely aligned with trends in the sun segment. Capitalizing on the work already
done over the year, from 2004 onward Sunglass Hut started to reposition its brand to capture more and
more fashion minded consumers seeking to satisfy their personal sense of style. At the same time it
continued to improve its store base in North America, especially in the Sunbelt and coastal States. The
program, which by the end of 2005 had touched 45% of Sunglass Hut stores in North America, also
involved remodeling and repositioning stores and marketing activities. During the year, 112 new
locations were opened, 93 closed and 145 moved to more favorable locations. At the year end, 10% of
Sunglass Hut stores in North America posted sales of US$ 750,000, 60% more than in 2004.
Regarding the product mix, Sunglass Hut continued to benefit from the strength of the Group’s brand
portfolio. Over 60% of units sold through its stores in 2005 were Luxottica Group products. Fashion
products were in particular demand thanks to the new Dolce & Gabbana and D&G collections and the
ongoing success of Ray-Ban, Prada, Versace, Chanel and Bvlgari.
MANAGED VISION CARE - EYEMED VISION CARE
With the 2004 integration of Cole National Managed Vision in EyeMed Vision Care, active in the industry
since 1988, Luxottica Group became the second biggest managed vision care operator in the U.S. With
417 new clients acquired in 2005, including Lockheed Martin, JPMorgan Chase and the States of Illinois
and Indiana, EyeMed Vision Care offers services to over 3,000 large and medium corporations,
government entities and health insurance providers, through a network of over 17,000 locations
including optician, ophthalmologist, optometrist stores as well as Luxottica Group retail stores. Today,
EyeMed Vision Care is a recognized leader in the vision care industry, known for providing choice,
quality, value and service excellence. Members have the opportunity to shop at Luxottica Group retail
stores and thousands of independent providers.
LUXOTTICA RETAIL ASIA-PACIFIC
In March 2005 Luxottica Group completed the acquisition of the remaining outstanding shares it did not
already own in OPSM Group, industry leader in optical retail in Australia, New Zealand and Hong Kong.
Full control of the company enabled Luxottica Group to increase the level of integration of its direct
distribution in Australia, which now includes stores from retail brands Sunglass Hut, OPSM (for fashion
and trend oriented consumers), Laubman & Pank (for premium services and eye care) and Budget
Eyewear (for price-conscious consumers).
Luxottica Group improved the structure and positioning of each of these retail brands, renovated a
number of stores and maximized the production, service and distribution synergies that come with
being part of the Group. OPSM and Laubman & Pank were repositioned by means of a new store
concept, more fashion and luxury products, new merchandising visuals and innovative advertising. A TV
campaign was launched to identify Laubman & Pank as Australia’s second optical brand, after OPSM.
By the end of 2005, 30% of OPSM and Laubman & Pank stores had been turned into the new format,
thus improving performance. The successful segmentation of Luxottica Group retail brands and brand-
specific initiatives are reflected in the significant increase in sales and brand awareness.
The program positioning Sunglass Hut as the premium fashion brand in sun retailing started out with a
new management, restyling of stores and an increase in the presence of Luxottica fashion products.
Separately, service functions shared by both the retail and wholesale divisions were created.