LensCrafters 2011 Annual Report Download - page 59

593 ACTION PLANS FOR 2012
Over the next few years, approximately 2 billion new consumers will enter the market, bring-
ing with them a broader range of great opportunities for Luxottica, but, at the same time,
the market will be 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 de-
termination to exploit opportunities as 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
positive year for the Retail Division in Australia, with comparable store sales1 increasing by
approximately 10% 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 40
million Australian dollars for OPSM retail store expansion, implementation of new tech-
nologies, 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% and 12% in 2012.
The ability to develop closer and longer lasting relationships with customers and consum-
ers along with an ability to tell comprehensive stories about the many brands in our portfo-
lio 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 sales1
grew by 8.7% 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 build-
ing 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 technol-
ogy for the optical segment.
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See p. 73 for footnote disclosure.