LensCrafters 2007 Annual Report Download - page 39

> 38 | ANNUAL REPORT 2007
SUN
Sunglass Hut
Sunglass Hut is the world’s largest and most important specialty sun retailer, with 2,003 stores
(1,600 in North America, 219 in Australia, New Zealand and Singapore, 87 in Europe. In addition to
the 23 stores in Middle East, Sunglass Hut opened in 2007 six stores in Hong Kong, and has now
a national presence, thanks acquisitions made, in South Africa, with 67 stores currently being
rebranded. In the eyes of consumers, Sunglass Hut increasingly represents fashion and the latest
trends. Founded in 1971, initially only inside department stores in the United States, Sunglass Hut
has cultivated a young, active and fashion-conscious image. It is now the leader in the high-end
sun retail market.
While 2006 saw the completion of the brand repositioning process, 2007 was characterized by the
ongoing conversion of stores to a new format, the aim being to further refine Sunglass Hut’s image for
fashion conscious consumers. Thanks to this gradual move up-market and increasing appeal to
fashion-conscious women, sales have risen 40% over the last three years on a comparable store
basis.
In the United States, Sunglass Hut further expanded with 199 new store openings and a restyling
of another 249, mainly in the key states of California, Florida, Texas and New York. Fashion
products were popular, driven mainly by oversized designer sunglasses and by the launch of new
brands: Dolce & Gabbana in 300 stores and D&G in 1,300 stores.
In Australia and New Zealand, Sunglass Hut strengthened its positioning and secured a number of
stores at major airports. Its market presence in the fashion and luxury segment grew, with the
largest increase in the luxury brands. Brand awareness improved significantly, especially amongst
women in the 25- to- 39 age bracket.
In Europe, Sunglass Hut has nearly 90 stores, mostly in the UK and notably in the country’s major
airports. In 2007, it continued with its brand repositioning process by rolling out the new store
design, improving product mix, stepping up personnel training and cultivating the image of a truly
customer-focused retailer. Such efforts attracted more fashion conscious customers and fueled
sales of premium and luxury products of special appeal to women. Further improvements will be
made in 2008 with a focus on airports; for example, a new store will open in Heathrow’s Terminal
5. A strong brand campaign to consolidate Sunglass Hut’s focus on the consumer will be
launched in 2008.
OTHER ACTIVITIES
LENS LABORATORIES
Luxottica Group manages one of the largest networks of optical manufacturing labs in North
America, with eight central labs and close to 905 lens finishing labs, mainly in LensCrafters stores.
All the labs use state-of-the-art processing technologies to meet growing demand, accommodate
new products and maintain a constant focus on quality and customer service.
Two laboratories with less advanced technology were closed and replaced by one state-of-the-art
lab in Columbus, Ohio. The eight central labs now serve all the Pearle Vision stores, which no
longer have in-store lens-finishing facilities as well as the Licensed Brands and some franchisees.
The labs in LensCrafters stores were upgraded to serve over-flow from both Sears Optical points of