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NORTH AMERICA
Luxottica operates three leading optical and sun retail brands: LensCrafters, Pearle Vision and
Sunglass Hut. Despite the slowdown in the economy, Luxottica maintained its position of having
the #1 optical and sun retail brands in North America in 2007, which was a very busy year in terms
of investments, with 327 new store openings, 585 store remodels and the launch of ILORI, a new
luxury retail brand.
The Group’s brands will leverage the investments made in stores and systems integration in order
to grow market share and customer loyalty.
LensCrafters
LensCrafters customers can expect sophisticated style and ambience, best-in-class service, style
consulting and a broad selection of premium products. LensCrafters staff are focused on the
customer’s style and on delivering excellence in customer service.
Pearle Vision
Consumers have always seen this longest-standing American optical brand as a provider of
“trusted eye care” offering thorough exams and products of the highest quality. Luxottica has
continued to improve the already excellent standards of eyecare and the relationship of trust with
its consumers, including through the introduction of new technology (Optomap Digital Retinal
imaging and EasyView lens) to a majority of locations and through the Group’s growth in Canada.
Sunglass Hut
Luxottica will continue to pursue the strategies that have proven successful in recent years, thus
increasing the share of fashion frames sold in its stores and further strengthening customer loyalty
with a vast selection of models helping consumers express their personal style. Nearly 70% of all
stores will have been remodeled by the end of 2008 and new advertising campaigns will direct
consumers to www.sunglasshut.com to boost the online business. Sunglass Hut will continue to
show customers the latest collections from the brands in its portfolio and organize special
marketing projects tied to specific brands.
ILORI
In 2007, Luxottica launched ILORI, creating a new luxury retail niche serving the needs of our most
sophisticated consumers. Flagship stores in New York and Los Angeles anchored six openings in
2007 with 15 to 20 more planned for 2008. Initial results are already exceeding high expectations
as ILORI focuses on prestigious locations, brand exclusivity and extremely high service levels.
Licensed Brands (Sears Optical and Target Optical)
Luxottica continues to see significant growth potential in this segment, and in Sears Optical and
Target Optical in particular. Sears Optical continues to refine its “Everyday Simple Pricing” strategy,
which is seeing excellent consumer response to online appointment scheduling with its affiliated
doctors. Target Optical continues to develop its store base and marketing partnerships. The
license agreement with BJ’s Wholesale Club was terminated in March 2008 as it was no longer in
line with the Group’s strategy in this segment of business.
Lens Finishing Labs
Luxottica Group has made major advancements in increasing its lens finishing capacity and
invested in advanced technologies to deliver higher-margin services to its customers. In 2007, two
older plants were replaced by a new state-of-the-art facility in Columbus, Ohio, and Pearle Vision
store labs were centralized to improve service and quality levels. The Group is now positioned to
be self-sufficient in terms of lens finishing and proprietary product development. Over the next two
to three years the Group will focus on systems integration, advanced technologies and facility
improvements.
Managed Vision Care: EyeMed Vision Care
EyeMed Vision Care is one of the largest managed vision care operators in the United States
providing vision insurance to more than 23 million eligible customers, including some of the largest
category and corporate insurance programs in the nation. Luxottica will continue to develop exclusive
relationships with American “Group Discount Plans” to further increase benefit usage by members.
ASIA-PACIFIC
In this increasingly important geographical region, which over the last two years has reported very significant growth, the Group:
- will continue to optimize the positioning of the Group’s retail chains in Australia and New Zealand and expand the network through existing channels;
- completed its restructuring of Sunglass Hut’s business and further strengthened this important chain’s network in the region, and has studied options for entry into new markets in the region, including in Thailand. In Australia, there is further opportunity to strategically segment the market through the integration of the Bright Eyes sunglass chain, which was acquired with Oakley;
- will continue to build on the successful launch of the LensCrafters brand in China and further strengthen the overall business structure with which the Group operates in that country;
- intends to monitor markets in the region to identify further medium term opportunities, including the potential for expansion within China.
OTHER MARKETS
The Group believes it has excellent opportunities in the sun segment, where it has the advantage of operating the only truly global brand, Sunglass Hut.
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