LensCrafters 2011 Annual Report Download - page 116

ANNUAL REPORT 2011> 40 |
time, also making the market more uncertain. Simplicity and speed, and the ability to
adapt and evolve rapidly have always been fundamental features of Luxottica. These traits,
along with a determination to exploit opportunities when they arise, will represent the keys
to success in 2012.
As a result of the successful implementation of Luxottica’s business strategy, 2011 was a
profitable year for the Retail Division in Australia, with comparable store sales (11) increasing
by approximately 10 percent in the fourth quarter of 2011. During 2012, Luxottica aims to
further strengthen the market position of OPSM, the main eyewear chain in the region,
through a plan that foresees 50 new points of sale in the next 24 months, expenditures of
over Australian Dollars 40 million for OPSM retail store expansion, implementation of new
technologies, and marketing and reorganization of the other Group retail chains in the
region. Once these action plans are implemented, the Retail Division is expected to grow
in the region between 8 percent and 12 percent in 2012.
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The ability to develop closer and longer lasting relationships with customers and consumers
along with an ability to tell comprehensive stories about the many brands in our portfolio
will increasingly become critical factors driving the Group’s continued success.
In the past few years, Sunglass Hut, the leading global “sun” specialty retail chain, has
proven exceptional at exhibiting such qualities. In 2011, the overall comparable store
sales (11) grew by 8.7 percent worldwide, achieving the best performance in the brand’s
history. Luxottica expects that the success of Sunglass Hut is likely to continue throughout
2012, as a result of growth in the so-called “sun belt” countries (geographic areas with
a high number of sunny days per year and highly inclined to consumerism), including
Europe, and by exploiting existing opportunities in the “travel retail” and “department
stores” channel.
Sunglass Hut is on a trajectory of worldwide expansion as a direct result of investments
made in Mexico, ongoing business activities in Brazil and China and build-out of the brand
in India. As a result, the number of Sunglass Hut stores is targeted to reach the 4,000 mark
by 2015.
2012 will be a particularly important year for Oakley, after six consecutive years of double-
digit growth, a trend that is expected to continue into 2012. Oakley has succeeded in
building exceptional relationships with top athletes in a variety of sports and will benefit
from enhanced exposure at the London Olympics where it is also a sponsor.
Further benefits will also arise from the expansion of the OCP program (Oakley Custom
Program), a key driver of business growth, creating opportunities for Oakley’s entire digital
platform. Investments in India, China, Brazil and Europe will also continue and sales in
these areas are expected to grow significantly, owing to stronger investments in style and
technology for the optical segment.