LensCrafters 2011 Annual Report Download - page 47

472.7 DISTRIBUTION
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, 2011, Sunglass Hut operated a retail network of 2,504 stores world-
wide, of which 2,431 corporate stores and 73 are franchise locations. The former are in
North America, Asia-Pacific, Europe, South Africa and Latin America, 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 grad-
ually 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 has recently reinforced its presence in the department store channel through
long-term strategic agreements with Macy’s in the United States, Myers in Australia and
Edgars in South Africa. Following a strategy to strengthen the brand equity by increas-
ing its presence in “gateway cities,” Sunglass Hut started opening, 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 provided consumers with a fun,
innovative experience celebrating a love of fashion and shopping.
In 2011, the expansion strategy into emerging markets led to an agreement pursuant to
which more than 70 sun stores in Mexico were acquired. This will enable the Group to enter
the Mexican retail market, which is a market filled with opportunity. Additionally, the Group
has begun to organically grow its operations in the Brazilian market.
ILORI
ILORI is Luxottica’s high-end fashion sun retail brand, with 22 stores in North America as
of December 31, 2011, 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, 2011, Luxottica operated 22 stores in some of the most upscale and ex-
clusive locations throughout the United States.