Lux Expands... Again!

[Shwing]

Luxottica Acquires a Major Canadian Optical Retail Chain
Luxottica Group S.p.Atoday announced the acquisition of Shoppers Optical, a 74-store Canadian-based optical chain owned by King Optical Group Inc. Once the transaction is completed, Luxottica Group will manage a total of 268 optical stores in Canada. The transaction is expected to close in June 2006.

Valerio Giacobbi, executive vice-president of Luxottica Group for North American retail, commented: "This acquisition, when completed, will allow us to accelerate our plans to improve coverage of the high potential US$1.4 billion Canadian optical retail sector. It will make our group the leading operator of optical stores in the country and the only one with full national coverage."

Jim Hughes, general manager of Luxottica Canada added: " We are not surprised of this acquisition which will change the size of our business and consolidate Luxottica's position in Canada. Our company is extremely optimistic about the many avenues that this growth will bring. We look forward in offering our customers with continuous support in sales, service and manufacturing processes."

Shoppers Optical operates in eight Canadian provinces; 26 of its stores are based in Ontario, where nearly 40% of the country's population lives.

"One of the key benefits of this acquisition," added Giacobbi, "is that the profile of Shoppers Optical's customers is already extremely similar to that of our Pearle Vision retail brand. Subject to and following closing, we plan to convert all stores to the Pearle Vision brand, thus allowing us to more rapidly grow its coverage of the Canadian market."

"Pearle Vision," concluded Giacobbi, "will become the leading national optical retail chain in Canada, with a total of 114 stores, and the vehicle for further growth for our group in this market. In fact, its business model offers tremendous potential for profitable growth thanks to the strength of the Pearle Vision brand - historically the most recognized optical retail brand in the U.S., now to be extended into the Canadian market."

In addition, this acquisition will give Luxottica the first full-service Canada-based central lens finishing lab with anti-reflective coating capability, according to the enterprise.

[Cindy K]

I have only one word for this situation:

'Imperial'

[For-Life]

err...




I told you so ;)

[edKENdance]

Hail to the King Baby!

[lensguy]

Between Lux and Essilor, the independent choices are getting slimmer !


Why do people get so ****** with LUX, and continue to support Essilor.

If the bulk of independant eye care professionals dont start SUPPORTING independant labs and products OTHER THAN ESSILOR and LUX we will ALL end up working for the MAN !!!!!!!!!!!!!!


WAKE UP !!!

[jameselex]

Hello all:

You guys are absolutely right, we all will end up working for the man if we don't support independent labs, but I'd like to ask one question- would you as optician to push generic progressive lenses to your customer if independent labs start offering that(that is the only hope of being independent, not grinding Essilor or any other big company's lens)?

I was also thinking why there would not be "association of independent opticians" to total our buying power and advertising power to compete with the Big, or the current organization for opticians should do, or will they ever do it?

:hammer:

[lensguy]

I think it would take more than just Opticians, Dr's would need to change buying habits also. The biggest thing is we cant be sucked in buy,

1. The price and big discounts offered. The short term gain if low price (putting independent's out of business) will cost us BIG in the long run. Once they have control of a market things change, not just price but how we run our business.

2. The marketing crap. How many progressives do we need, one not that much different than the other, it seems to be everyone in the marketing department has an idea and someone keeps saying "yeah, good idea, build a marketing program behind it and lets have a roadshow".
Physo= wavefront= BULL#@$@#, and I keep reading how people are buying this.

I thing in Canada we still have options for progressives and a few labs, I use signet for cheep stuff and rodenstock for mid to high. The real free form stuff has been developed by the like of zeiss and rodenstock, this is the good poop! If you sell crap like physo,w,ipsio you need to do some homework. Filter through the "Gerry Jones" bull and start questioning the actual optics and theorys.

[For-Life]

I think it would take more than just Opticians, Dr's would need to change buying habits also. The biggest thing is we cant be sucked in buy,

1. The price and big discounts offered. The short term gain if low price (putting independent's out of business) will cost us BIG in the long run. Once they have control of a market things change, not just price but how we run our business.

2. The marketing crap. How many progressives do we need, one not that much different than the other, it seems to be everyone in the marketing department has an idea and someone keeps saying "yeah, good idea, build a marketing program behind it and lets have a roadshow".
Physo= wavefront= BULL#@$@#, and I keep reading how people are buying this.

I thing in Canada we still have options for progressives and a few labs, I use signet for cheep stuff and rodenstock for mid to high. The real free form stuff has been developed by the like of zeiss and rodenstock, this is the good poop! If you sell crap like physo,w,ipsio you need to do some homework. Filter through the "Gerry Jones" bull and start questioning the actual optics and theorys.

You have some good points, but I completely disagree with your shot about the Ipseo.

Also, remember that there is the need to differentiate ones self.

[francisOD]

The biggest problem in my mind regarding uniting independant opticians and optometrists for that matter is that we are independants for a reason. We like to run our own ship the way we see fit. However until some sort of alliance is formed, lux will be the biggest name accross the country. what is interesting is that if independants both Opticians and OD's got together, we would dwarf LUX in Canada...would that not be nice...Anyone interested in starting an alliance between Opticians and OD's write me a PM and I will compile opinions and report if there is any momentum to do this.

[jameselex]

If there would be an "association of independent opticians ", the association probably should promote independent opticians as a group of the best in filling prescriptions, best in eyewear consulting comparing with the BIG as some sort production outlet, also the associaiton would also educate consumers about choosing eyewear , and it has a web page to list all the opticians; all opticians can put orders together through the association to cut cost, or the association should have its own brand for half the cost of others, as for running the business, it's up to the optician .

so the dream would be like there is a monster chain with 2000(or more?) opticians, isn't it nice?

[For-Life]

If there would be an "association of independent opticians ", the association probably should promote independent opticians as a group of the best in filling prescriptions, best in eyewear consulting comparing with the BIG as some sort production outlet, also the associaiton would also educate consumers about choosing eyewear , and it has a web page to list all the opticians; all opticians can put orders together through the association to cut cost, or the association should have its own brand for half the cost of others, as for running the business, it's up to the optician .

so the dream would be like there is a monster chain with 2000(or more?) opticians, isn't it nice?

Here is the problem. There are some horrible independents out there. Actually, there are a lot. We say independents are better, because it really matters for the independent, and I agree. But at the same time, there are some really unethical ones out there.

Also, our business has talked about expanding before. So what if I opened a second store, then five more, then I move into another city. When am I no longer independent?

Now I can understand the cutting cost thing, but you have to watch out for collusion laws.

[Chris Ryser]

Funny reaction...................................


I posted this same thing a week ago...................and nobody looked at the thread,

Poo..................

[Shwing]

Uh, isn't the OAC (Opticians Association of Canada) there for you? They don't represent the chains (that's the VCC)- they 'only' represent the common optician, regardless of where they work (including those who are at a chain). It so happens that (according to stats) about a third of opticians in Canada are independent or such.

www.opticians.ca

If you are an optician in Alberta or many other provinces, you've been an OAC member for years. Perhaps attend the AGM? Or simply contact the OAC at the address above.

[coupe]

Lux started the whole thing and now we have Aspex/Easy Clip running Farhat opticians, New look..Benvest...Iris etc ...etc. When are the lights going to come on and we see Marchon and Safilo finally taking the retail plunge in order to "keep" their market share. Personnaly I think that within the next 5-10 years all independents will be like car dealerships.....affiliated with one of the top three brand name optical companies.

It also seems that the question of "monopoly" is not in the books as these corporations gobble up all of the competion. How long does it take before the gouverment says enough is enought. Boy I must be dreaming thinking the gouverment is going to save us.

But don't worry there is always the old wheel. What goes around,comes around. and if the americian corps keep shovelling money into China,soon the USA will be a third rate country and CHINA will be calling the shots. Yeh commrade Luxottica.

PS: How many independents out there started their business within the last 5 years. I am willing to bet ...not to many. I think ,and I am probably wrong, that most independents started their businesses a long time ago. We are relics of the past. Do you know it is possible for someone to be born and die in Canada and NEVER SHOP IN AN INDEPENTDENTS RETAIL STORE. The power of corporations.

[For-Life]

Lux started the whole thing and now we have Aspex/Easy Clip running Farhat opticians, New look..Benvest...Iris etc ...etc. When are the lights going to come on and we see Marchon and Safilo finally taking the retail plunge in order to "keep" their market share. Personnaly I think that within the next 5-10 years all independents will be like car dealerships.....affiliated with one of the top three brand name optical companies.

It also seems that the question of "monopoly" is not in the books as these corporations gobble up all of the competion. How long does it take before the gouverment says enough is enought. Boy I must be dreaming thinking the gouverment is going to save us.

But don't worry there is always the old wheel. What goes around,comes around. and if the americian corps keep shovelling money into China,soon the USA will be a third rate country and CHINA will be calling the shots. Yeh commrade Luxottica.

PS: How many independents out there started their business within the last 5 years. I am willing to bet ...not to many. I think ,and I am probably wrong, that most independents started their businesses a long time ago. We are relics of the past. Do you know it is possible for someone to be born and die in Canada and NEVER SHOP IN AN INDEPENTDENTS RETAIL STORE. The power of corporations.

Well the companies are playing follow the leader. I argue against a manufacturing channel getting into retail. Eventually, retail stores begin to start a backlash. Sony is a great example right now, as music stores are really starting to dump its products. I figure what will happen is one of these companies is going to take a huge hit, and then we will probably see Lux turn around and sell either the Sears or Pearle brand, and the rest of the frame companies will dump their retail stores.

[coupe]

So be it but that has not stopped OAKLEY from opening two retail stores in Quebec. How soon till they decide to expand to other provinces? Will Bolle and Vuarnet enter the retail arena ,in competetion?

When you can take a product,manufactured in your factory at the exact "cost price" and with little or no interference from middle men,distributors,sales people,telephone sales staff etc and shoot it straight to the "RETAIL PRICE' market,you are realilizing tremendous profit. With Luxottica's vast quantities of retail outlets (app. 6,195 worldwide at last count), the profit margins must be staggering. I do not forsee them giving up this "gold mine" without a struggle.

In the USA Luxottica has started using it's LENSCRAFTERS RETAIL labs to do the work for their Pearle outlets. One more step in cutting out expenses and increasing profits. Will this happen in Canada ???????

Yesterday you beat the competion thru hard work and the smarts....today you simply buy the competion and increase your market share that way. The company with the "deepest pockets" is the company that will win.

[jherman]

Free Form

Hello all:

You guys are absolutely right, we all will end up working for the man if we don't support independent labs, but I'd like to ask one question- would you as optician to push generic progressive lenses to your customer if independent labs start offering that(that is the only hope of being independent, not grinding Essilor or any other big company's lens)?

I was also thinking why there would not be "association of independent opticians" to total our buying power and advertising power to compete with the Big, or the current organization for opticians should do, or will they ever do it?

:hammer:

[jojo]

I feel I have to respond to this thread. I feel another side needs to be heard.

There are several complaints of the big corporations taking over, yet how do you think they got so big? it was one man who started Luxottica and he was able to expand and grow and then buy other companies. What's wrong with that?
Are independants required to stay small forever? Isn't the purpose of owning your own business to see it prosper and grow?

Remember that there are many of your fellow opticians working for the big corporations. In the end, it's about the consumer. Outstanding customer service and proper fits is where everyone needs to excel regardless of whom you work for.

[For-Life]

I feel I have to respond to this thread. I feel another side needs to be heard.

There are several complaints of the big corporations taking over, yet how do you think they got so big? it was one man who started Luxottica and he was able to expand and grow and then buy other companies. What's wrong with that?
Are independants required to stay small forever? Isn't the purpose of owning your own business to see it prosper and grow?

Remember that there are many of your fellow opticians working for the big corporations. In the end, it's about the consumer. Outstanding customer service and proper fits is where everyone needs to excel regardless of whom you work for.

it is not about Lux getting big. I think that is great for Lux and they did a great job.

The problem is there have been many individual stores who have bought a lot of Lux product and help make Lux rich. Now Lux has entered into competition with those stores. When you buy from Lux you give the Lux the ability for them to spend more money on marketing for the stores, to buy brand names and put them in these stores, to move down the street from you and take part of your business away.

[jojo]

Thanks For-Life. I understand your response.
It will be interesting to see in the years to come as to what will all happen.

[Chris Ryser]

Remember that there are many of your fellow opticians working for the big corporations. In the end, it's about the consumer.

It is absolutely not about the consumer. It is about their own company and at the end the consumer gets taken.

If Lux would have grown and taken over other optical manufacturers it would have been fine because they would have proven their strenght over less powerful companies.

However they have chosen to take over their own customers and become competition to the independent optician who are also their customers. They now have a source of customers.........their own stores where they can command what is being purchased and what is being sold................mainly their own products.

This is called vertical integration which has only one goal..............total dominance of the market from manufacturing to the retail end. If that is ever achieved you have no more indendent successfull opticians and anybody who choses that field will stay an employee for life.

Similar principle as the oil companies. There are no more indendent dealers and all the different gasoline brands are made exactly the same and in the same reffinery.

The we can gon on and talk about the lens manufacturers who do the same thing. Essilor, Zeiss incl.Sola, and Hoya are taking over indendent labs............shut out others from purchasing some of their lenses also with the goal for total dominance of that side of the optical business.

They also use super hype and brainwash advertising towards the public to create a demand for their unique products which makes it easy for the optician to sell high priced products, which in turn finances again the market takover sceem.

The more you as an optician support these companies, the sooner you dig your own professional grave.

[francisOD]

Chris, you are sooo right...I dropped Lux 7 years ago and never looked back. My dispensary has not slowed down. There are enough frame companies out there that offer a variety of brand and no name frames to survive very well. Some independants out there claim they cannot survive without selling Lux products because the demand is so strong...Lux seems to survive very well without Gucci, Armani...Go into a Lenscrafters and ask for a Gucci frame... They will tell you they do not carry them but have choice ABC that are all brand names with excellent warranties blah blah blah...In other words, their staff is trained to handle these request and instead of just saying no and having a dissappointing look on there face, they trot on and give you there best sells pitch...and it is good! This is what independants who are asked similar questions need to prepare for.

I am in a "C" market without a Lenscrafters for 30 minutes so Lux never bothered me but I still refused to put money in the pockets of my competitors...Well with this purchase, I now have them in my town. There is no market that is safe anymore. If independants do not wake up soon (it may be too late already), Independants will be few and far between and will be mainly old relicts with excellent customer relations who have weathered the storm. New opticians and Ods will find it less and less appealing to start there own practice. Just my 2 cents.

[rainchild]

I don't think the independents need to worry overmuch. Lux is no where near a monopoly yet...independants and dr's dispensaries still make up the majority of the market. Lux is also not interested in driving out the independents...I manage a lenscrafters store and I will tell you that Lux is carefull to protect it's non affiliate clients. We carry all the Lux name brands but but not all the styles within the brands. There are many styles that they offer as an exclusive to the independant markets. I have had many customers coming in for a specific style that they saw in a magazine. I'll check our on-line catalogue and it won't be there. when I phone Lux to order it I'm told that that particular style is not available to Lenscrafters.

[Chris Ryser]

I don't think the independents need to worry overmuch.

A successfull and growing company has only one goal..............to make bigger sales and eliminate and beat out competition.

Lux is successfull in the manufacturing sector as well as in the retail sector.

Draw your own conclusions.