LensCrafters 2008 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2008 LensCrafters annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

> 42 |ANNUAL REPORT 2008
On the premium and luxury front, numerous projects, collections and special editions are being developed
to attract customers in this category.
In the prescription eyewear business, which is less cyclical, Luxottica will carry forward the drive to improve
market penetration, customer service and breadth of offering. Of key importance here will be the
launching of the Prada Linea Rossa, Arnette and Ralph optical collections.
High level priority will be given to differentiation of the offering by geographical region and type of
customer, so that sales strategies can be tailored to local demand.
In this context, a more incisive approach to the main customers will be developed in order to leverage the
entire brand portfolio to maximum effect by longer term planning and investment in the potential of single
customers.
After three years of success, the STARS program will be extended, with the aim of topping 1,000 customers
and establishing even more solid relationships with this important segment of customers.
Following expansion in Thailand and India, the retail distribution segment will be assessing new
opportunities in emerging countries and also any premium locations that may become available, even in
more mature markets.
In North America, the strategy of segmentation and differentiation of customers across the Group’s various
chains will be continued, the aim being to optimize the potential of each brand to attract new customers.
In this context, LensCrafters’ drive to reinforce its position by leveraging its values of service excellence
and breadth of offering will be particularly important.
BALANCE SHEET OPTIMIZATION AND EFFICIENCY DRIVE
In 2009, the process of optimizing net working capital and the balance sheet will continue. There will be a
planned reduction in inventory levels of approximately 10-15% and a significant efficiency improvement
throughout the entire supply chain, as well as a review of commercial conditions for around 80% of
suppliers.
New investments, which will be just under Euro 200 million in 2009, will be carefully focused on high valued
added projects in the field of information technology and the supply chain.
Containment of all expenses, whether industrial or commercial, will continue to be a high priority. The
brand portfolio and international commercial structure will be further optimized. Advertising spending will
be cut by 10% in both segments, while product promotion at points of sale will be stepped up.
The retail distribution segment’s presence will also be optimized in North America by the planned sale of
56 Pearle Vision corporate stores to potential franchisees, closing of 117 stores and placing of another 110
under review.