LensCrafters 2005 Annual Report Download - page 53

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> 52 | ANNUAL REPORT 2005
of fashion frames sold in stores, which carry higher margins and appeal to the female consumer with
higher frequency purchase cycles. The brand’s positioning will also be supported through careful
location of stores and remodeling of approximately 85% of the store base by the end of 2008.
Licensed brands (Sears Optical, Target Optical, BJ’s Optical)
Luxottica Group recently entered this segment and immediately became its most important operator.
This segment shows significant growth potential in terms of both quality and, above all, volumes, which
Luxottica Group’s distribution and manufacturing structures are perfectly positioned to serve.
Lens finishing labs
Combining its broader presence in the market with additional capacity for handling lens finishing work,
Luxottica Group can increase the amount of higher margin lens treatments made available to
consumers at its stores; it is also expected to reduce the time and cost of finishing work provided by
third parties.
Managed Vision Care - EyeMed Vision Care
With the integration of Cole National Managed Vision Care, EyeMed Vision Care is now the second
largest managed vision care operator in the U.S. Its ability to serve the market has increased both from
a geographical standpoint as well as in terms of product offerings, making EyeMed Vision Care services
even more appealing for corporations and their employees. One result of this has been the increase in
the number of consumers using vision benefits both at independent and Luxottica Group stores.
ASIA-PACIFIC
Today, the goal is to bring the efficiency and profitability of Luxottica Group’s retail operations in this
region more in line with that of its North American retail operations prior to the Cole National acquisition,
by 2006. To do this, the Group plans to:
• optimize the positioning of the retail brands through which the Group operates in Australia and New
Zealand to further improve overall profitability;
• complete the restructuring of Sunglass Hut’s business in the region;
• integrate the retail brands acquired in China in 2005, build the most appropriate infrastructure and
optimize the positioning of the entire retail structure in China, including Hong Kong;
• monitor markets in the region to identify further opportunities.