LensCrafters 2008 Annual Report Download - page 28

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> 26 |ANNUAL REPORT 2008
In order to centralize services and achieve economies of scale, all in-store labs were closed and their work
was transferred to nearby LensCrafters labs or to one of Luxottica’s eight central lens finishing facilities.
As of December 31, 2008, Pearle Vision operated 449 corporate store locations and had 390 franchise
locations throughout North America. The brand has significant growth opportunities in both the United
States and especially in Canada, where the brand was strengthened in 2006 and is now the only optical
chain represented in all provinces.
With the acquisition of Cole National, Luxottica also acquired a network of distribution outlets operating
under the brand names of certain American department stores. These “licensed brands” are Sears Optical
and Target Optical (a third license acquired with Cole, “BJ’s Optical”, expired in March 2008 and was not
renewed). These points of sale are located in stores that bear the names of the hosts and offer consumers
the convenience of taking care of their optical needs where they do their shopping.
Both brands have a precise market positioning that Luxottica intends to build on by improving service
levels and strengthening their fashion reputation by offering brands such as Ray-Ban and Vogue.
As of December 31, 2008, Luxottica operated 879 Sears Optical and 325 Target Optical locations
throughout North America.
In Australia and New Zealand, Luxottica operates three chains specializing in the optical business: OPSM,
Australia’s top eyewear brand for luxury and fashion-minded customers; Laubman & Pank, famed for its high-
quality assortment and services; and Budget Eyewear, focused on price-conscious consumers.
Though addressing different customer categories, all three brands have continued since their acquisition in
2003 to extend further into the fashion business through innovative store formats, personnel training and
product assortment programs tailored to their respective markets and leveraging Luxottica’s vast brand
portfolio. As of December 31, 2008, Luxottica owned 500 stores throughout Australia: 280 OPSM, 131 Laubman
& Pank and 89 Budget Eyewear, of which 18 were under franchise.
OPSM is also the market leader in New Zealand, with 39 corporate-owned stores, mainly in large urban areas.
EyeMed Vision Care
EyeMed Vision Care is one of the largest managed vision care operators in the United States and is the result
of the integration of EyeMed’s previous business (dating back to 1988) and Cole National Managed Vision.
EyeMed Vision Care serves over 23 million subscribers in large and medium size companies, public
administrations and insurance programs and has a network of over 17,000 points of sale, including
opticians, ophthalmologists, optometrists and stores in chains operated by Luxottica.
EyeMed Vision Care is also a recognized leader in terms of quality, choice, value for money and service
excellence - all priority concerns for managers shopping for vision care programs, especially for large groups.
Customers using such services benefit from the quality of the products and the wide reach of the
distribution network, thus enjoying a vast choice amongst the numerous stores in the Group’s chains and
independent optical retailers.
Lens Laboratories
Together with LensCrafters’ 900 in-store labs, Luxottica operates seven central lens finishing labs that are
of strategic importance to the Group’s North American retail business. By combining its broad presence
in the market with additional capacity for lens finishing work, the Company can improve quality of service
(while reducing the times and costs of finishing work otherwise done externally) and increase margins at
the same time.
All the labs use highly advanced technologies to meet growing demand, follow new products and stay
focused on quality and customer service.
The seven central laboratories serve all the Pearle Vision stores, the licensed brand stores and a number
of franchises. The labs in LensCrafters stores have been upgraded to help Sears and Pearle Vision stores
(including those under franchise) to handle peak demand.
In Australia, most of the Group’s local needs are covered by the central Eyebiz laboratory.