Rumors have started on independent opticians being added to the largest Corporation..

[Chris Ryser]

This rumor thread is starting in the Province of Quebec, but if there is any truth to it it will affect every independent retail optician and optometrist in North America and I hope this thread will not be moved by Moderators to the Canadian Forum, just because it started there.

Essilor is has been in the lab business through takeovers for a while and nobody gets exited on the news that more have been added. It was kind of silent when they added some of the largest frame producers overseas and their distributors in the USA.

They have added optical machinery manufacturers and dominte that part of the business.

There was no exitment when they purchased the then largest online optical and later on a few more.

Now the latest rumor (no proof yet) that has it that they have started the final step of aquiring the last untouched frontiere ....................the independent opticals.

.............. told me that Essilor is starting to buy up independent stores in Quebec.

Apparently they have a front running ECP, who's name they use with an acquisition specialist to make the deal happen.

So far he says, they are at approximatley 15-20 stores. Could this be a new method by big E to get greater control of a very strict retail market.... another monopoly push, only this time in retail sales and not laboratories....or possibly a way to prevent other chains from getting their hands on Quebecs retail market.

comments ?

[Java99]

Interesting food for thought. I keep waiting for VSP to do this.

[idispense]

It makes sense to continue on with vertical integration. It also makes sense to acquire large retail chains with their own labs now . Or acquire on liners with labs, brand name recognition and retail distribution. It will lock out others.

[erichwmack]

Why Quebec? Do they have an ultra lucrative eyecare market? Or are the laws/rules different up there than the USA so as to make it s great take-over test market?

[Barry Santini]

Luxury Optical Holding here in the US is doing the same thing on the high-end stores. I'm not sure they are affiliated with E or not.

B

[optimensch]

I've asked my essilor contact point blank and they absolutely deny they are doing this.
Naturally this makes me suspect the rumor is true!

Certainly not surprising and because the Canadian optical market is stagnant or even in decline, in particular in Quebec, the bosses in Paris may be looking for ways to prop up sales. Seems plausible.

[D_Zab]

There was an article in Vision Monday where it talks about Essilor and VSP "Co-Branding" with ECPs:

http://www.visionmonday.com/business...endent-ecps-1/

[NCspecs]

I'm not sure if I also heard of this as a rumor or if we all speculated that this was going to be the natural progress of things and now it has come to fruition. It's only a matter of time.

Here in Charlotte, NC there is a new chain called "My Eye Doc" that has been snapping up private practices right and left. Eye Optix was the first local chain to succumb and they have sent out letters to all of the surrounding private practices, even ours. I know a little more about how this came to happen in Charlotte but I'm not going to gossip here. Neither of my Drs are interested in this sort of business model.

[mshimp]

What are you talking about, this is old news, Essilor has been doing this in the United States for a little while now. What they do is use an independent optician or optometrist that has "married" themselves with Essilor and then.............................

[Chris Ryser]

Why Quebec? Do they have an ultra lucrative eyecare market? Or are the laws/rules different up there than the USA so as to make it s great take-over test market?

The Essilor presence in North America started in Quebec and it has been the test area aver since.
Quebec is a French speaking Province so it is a natural. Also there are laws protecting the profession and those are little more comples than elsewhere.

In 1964, Mr Cottet the then SL President arrived in New York, with his wife on the liner "France" having crossed the Atlantic in the presidential suite. I happened to pick them up in the Harbour and drive them to Montreal.

There they chose a newly founded company by the name of "Optique Moderne" owned by 5 local optometrists
under the management of the the former lab manager of the local AO lab, as their newly appointed Canadian distributor.

Four years later "Optique Modern" went bankrupt and Essilor bailed them out so they would not loose all the unpaid stock.
They incorporated Essilor Canada and did progress constantly to where it is now.

The Canadian operation has always let everybody know that they were independent on the USA.

[NCspecs]

What are you talking about, this is old news, Essilor has been doing this in the United States for a little while now. What they do is use an independent optician or optometrist that has "married" themselves with Essilor and then.............................

More or less, this is really how it is. Plenty of offices (Optometrists and Opticians alike) don't even realize that Essilor isn't the only game in town- simply the largest.

[lensguy]

Essilor is a public traded co. If they in fact purchased, in whole or part a company of any kind, would it not have to be reported in the financials? Not required to be publicly announced, but reported.

If they team with Opt/Od's "married" to them, is this not supporting the independent? unless they actually have share control (reported?) it seems to be positive to me........

[Uncle Fester]

What they do is use an independent optician or optometrist that has "married" themselves with Essilor and then.............................

Consummate the marriage I assume.

[mshimp]

How about Essilor providing funding to a particular retail company that allows them to expand or purchase existing practices with a contractual agreement that requires them to use their labs.

Consummate the marriage I assume.

Yes consummated.

[Chris Ryser]

This had been done by Imperial Optical in Canada who financed (for over 50 years) startout ophthalmologist's and optometrist's and opticians by installing their intruments or machinery on a never never pay off loan, for the exchange of guiding patients their own store on the same floor or downstairs.

These retailers were only allowed to purchase ca 10-15% outside the Imperial Oprical goods and Lab services, or the over the allowance purchases would be deducted from any commission payments.

It all could all be repeated in a more modern version.

All Essilor owned from machinery to products and also conventional retail as well as on-line.

[drk]

If you listen to the instincts of Racethe1320, he predicted VSP will follow suit, maybe not in an equity way, but in a co-branding way.

This doesn't surprise me. They've done it with wholesale labs.

Too bad they will only buy opticals for pennies on the dollar.

[LENNY]

If you listen to the instincts of Racethe1320, he predicted VSP will follow suit, maybe not in an equity way, but in a co-branding way.

This doesn't surprise me. They've done it with wholesale labs.

Too bad they will only buy opticals for pennies on the dollar.

They will buy the practice for exactly what its worth plus how bad they want it!
Like anything else.
Somebody mentioned vertical integration!

[Chris Ryser]

On the other thread I posted it looks like LUXOTTICA has joined the fight of the giants.............check it out.

[ak47]

Consummate the marriage I assume.

is that what they call it these days ?

[Iheartglasses]

Avoid My Eye Dr! Within 4 months, they went from 50 stores to 64 or so and who knows how many since then. I have a lot I could add but let's just say their employees are increasingly miserable. They offer more money than LC and little by little, they are becoming like LC.