LensCrafters 2007 Annual Report Download - page 19

> 18 | ANNUAL REPORT 2007
Sunglass Hut
Luxottica will continue to pursue the strategies that have proven successful in recent years, thus
increasing the share of fashion frames sold in its stores and further strengthening customer loyalty
with a vast selection of models helping consumers express their personal style. Nearly 70% of all
stores will have been remodeled by the end of 2008 and new advertising campaigns will direct
consumers to www.sunglasshut.com to boost the online business. Sunglass Hut will continue to
show customers the latest collections from the brands in its portfolio and organize special
marketing projects tied to specific brands.
ILORI
In 2007, Luxottica launched ILORI, creating a new luxury retail niche serving the needs of our most
sophisticated consumers. Flagship stores in New York and Los Angeles anchored six openings in
2007 with 15 to 20 more planned for 2008. Initial results are already exceeding high expectations
as ILORI focuses on prestigious locations, brand exclusivity and extremely high service levels.
Licensed Brands (Sears Optical and Target Optical)
Luxottica continues to see significant growth potential in this segment, and in Sears Optical and
Target Optical in particular. Sears Optical continues to refine its “Everyday Simple Pricing” strategy,
which is seeing excellent consumer response to online appointment scheduling with its affiliated
doctors. Target Optical continues to develop its store base and marketing partnerships. The
license agreement with BJ’s Wholesale Club was terminated in March 2008 as it was no longer in
line with the Group’s strategy in this segment of business.
Lens Finishing Labs
Luxottica Group has made major advancements in increasing its lens finishing capacity and
invested in advanced technologies to deliver higher-margin services to its customers. In 2007, two
older plants were replaced by a new state-of-the-art facility in Columbus, Ohio, and Pearle Vision
store labs were centralized to improve service and quality levels. The Group is now positioned to
be self-sufficient in terms of lens finishing and proprietary product development. Over the next two
to three years the Group will focus on systems integration, advanced technologies and facility
improvements.
Managed Vision Care: EyeMed Vision Care
EyeMed Vision Care is one of the largest managed vision care operators in the United States
providing vision insurance to more than 23 million eligible customers, including some of the largest
category and corporate insurance programs in the nation. Luxottica will continue to develop exclusive
relationships with American “Group Discount Plans” to further increase benefit usage by members.
ASIA-PACIFIC
In this increasingly important geographical region, which over the last two years has reported very
significant growth, the Group:
• will continue to optimize the positioning of the Group’s retail chains in Australia and New Zealand
and expand the network through existing channels;
• completed its restructuring of Sunglass Hut’s business and further strengthened this important
chain’s network in the region, and has studied options for entry into new markets in the region,