LensCrafters 2006 Annual Report Download - page 27

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|27 <
Luxottica Group’s distribution structure is one of the most extensive and effective in the industry,
embracing retail stores and serving third-party independent stores and chains through a wholesale
distribution network. This robust distribution structure is the result of a fundamental strategic vision
that management had years ago and was a key to the Group’s remarkable future growth. Originally
established as a manufacturer of frames, Luxottica Group has gradually integrated wholesale
distribution into its structure and, since 1995, retail distribution as well. Today, the Group operates
in all the world’s key wholesale and retail eyewear markets and plans to accelerate its expansion in
emerging markets.
From a retail perspective, the Group operates through more than 5,700 stores mainly in North
America, Asia-Pacific, the UK, China and the Middle East, thus ensuring broad distribution
throughout the world’s key markets. The Group’s direct retail experience has translated into unique
expertise and understanding of the markets.
GROUP RETAIL CHAINS WORLDWIDE
Geographical area Retail Number Primary
chain of stores product
North America LensCrafters 902 Prescription
Pearle Vision (*) 840 Prescription
Sunglass Hut 1,502 Sun
Licensed Brands:
Sears Optical 941 Prescription
Target Optical 264 Prescription
BJ’s Optical 153 Prescription
Asia-Pacific OPSM 314 Prescription
Laubman & Pank 127 Prescription
Budget Eyewear 86 Prescription
Sunglass Hut 224 Sun
China & Hong Kong Xueliang Optical 47 Prescription
Ming Long Optical 125 Prescription
Modern Sight 27 Prescription
LensCrafters 75 Prescription
Europe Sunglass Hut 92 Sun
(*) of which 417 are franchises.
Data as of December 31, 2006.
The Group’s wholesale distribution network covers over 130 countries, with directly-controlled
operations in its 28 main markets, where customers are mostly retailers of mid- to premium eyewear,
such as independent opticians, optical retail chains, specialty sun retailers and duty-free shops. In
North America and other areas, main customers also include independent optometrists and
ophthalmologists as well as premium department stores. Direct distribution in the key markets gives
Luxottica Group a considerable competitive edge, making it possible to maintain close contact with
customers, maximize the image and visibility of the Group’s brands and optimize distribution. In
addition to making some of the best brands, with a broad array of models tailored to the needs of
each market, Luxottica Group also provides its wholesale customers with the assistance and
services needed to enable their businesses to be successful.
DISTRIBUTION