LensCrafters 2010 Annual Report Download - page 30

ANNUAL REPORT 2010> 28 |
of franchises. The labs in LensCrafters stores have been upgraded to help Sears and Pearle Vision stores
(including those under Pearle Vision franchise) handle peak demand.
In addition, the Group operates Oakley optical lens laboratories in the United States, Ireland and Japan.
These labs provide Oakley prescription lenses to the North and South American, European and Asian
markets, respectively, enabling them to achieve expeditious delivery, better quality control and higher
optical standards.
Most of the Australian laboratory needs are provided by the Eyebiz Laboratory, which became a joint
venture between Luxottica and Essilor International in February 2010.
SUN AND LUXURY RETAIL
Sunglass Hut
Since the acquisition of Sunglass Hut in 2001, Luxottica has become a world leader in the specialty sunglass
retail business.
As of December 31, 2010, Sunglass Hut operated a retail network of 2,295 stores worldwide, of which 2,229
corporate stores and 66 are franchise locations. The former are in North America, Asia-Pacific, Europe and
South Africa, whereas the latter are in Middle East, India, the Philippines and Thailand.
Founded in the United States in 1971 to operate in department stores, Sunglass Hut gradually expanded
its base of stores and kiosks in shopping malls to new retail locations on city shopping streets and in
airports. Over the years, Sunglass Hut focused increasingly on selling premium sunglasses. In 2007,
Luxottica developed an exclusive new store concept, which is now being extended to all prime Sunglass
Hut locations around the world. This repositioning was made possible by substantial changes to the
product mix allowing the chain to focus more on fashion and luxury brands, especially for women, while
maintaining a varied selection of lifestyle, sport and performance sunglasses.
The chain reinforced its presence in the department store channel through long-term strategic agreements
with Macy’s in the United States, Myer in Australia and Edgars in South Africa. Following a strategy to
strengthen the brand equity by increasing its presence in “gateway cities”, Sunglass Hut opened, in
April 2010, flagship stores in New York and London. These simultaneous openings in major cities mark
an unprecedented commitment to the eyewear category and provide consumers with a fun, innovative
experience that celebrates a love of fashion and shopping.
In 2011, the expansion strategy into emerging countries has driven Luxottica to an agreement pursuant
to which more than 70 sun stores in Mexico have been acquired. This will enable the Group to enter the
Mexican retail market, a market with great opportunities.
ILORI
ILORI is Luxottica’s high-end fashion sun retail brand, with 24 stores in North America as of December 31,
2010, including flagship stores in the SoHo neighborhood of New York City and in Beverly Hills, California.
ILORI caters to a different, more exclusive clientele than Sunglass Hut, offering a richer purchasing
experience in prestige locations, featuring sophisticated luxury collections, exclusive niche brands and
highly personalized service.
The Optical Shop of Aspen
Founded in the 1970s, The Optical Shop of Aspen is known in the optical industry for its luxury brands for
both prescription and sunglasses and its first class customer service. As of December 31, 2010, Luxottica
operated 24 stores in some of the most upscale and exclusive locations throughout the United States.
Oliver Peoples
Luxottica operates six luxury retail stores under the Oliver Peoples brand. The Oliver Peoples brand retail
stores only offer Oliver Peoples, Mosley Tribes and Paul Smith products. Two additional Oliver Peoples
retail locations are operated under license in Tokyo and Los Angeles.