Industry trends

A number of industry trends are creating favorable conditions for GrandVision’s business. Among these is the general trend of decreasing market regulations, the gradual consolidation of the optical retail market, and the growing online market for eyewear. The main market trends in global optical retail include:

Deregulation benefits optical retail chains

Market deregulation continues to increase globally. The easing of restrictions on eye test and measurement services, and on cooperation between optometrists and opticians is facilitating market access by full-service retailers and optical retail chains like GrandVision. Changes to social security and health insurance reimbursements are also increasing price competition, as the implied subsidies for the less efficient retailers diminish.

Fragmented markets to further consolidate

Consolidation of the highly fragmented optical retail market is expected to continue, supporting the growth of more effective and efficient retail formats. Large optical retail players such as GrandVision have greater purchasing advantages with suppliers and can operate more efficient supply chains. They can also achieve significant economies of scale through centralized product finishing facilities and in their marketing campaigns. These advantages result in lower prices for consumers and in the development of best practice standards in customer service.

Emerging online eyewear market

The online eyewear market has grown to represent approximately 5% of global eyewear sales, which is below the online penetration levels of many other retail segments. Generally speaking, contact lenses, ready readers and plain sunglasses are the most suitable products for purchase through pure online channels. The need for personal interaction of consumers with vision experts to administer eye tests and examinations, the high degree of product individualization and the requirement to fit the finished prescription eyeglasses, is still a major limitation for pure online players. Nevertheless, consumers increasingly expect broader and more flexible forms of retail interaction and service. GrandVision has established an omni-channel route to market that is integrated with the services it provides in store. This enables consumers to complete a number of actions online, such as preselecting frames, booking appointments and replenishing contact lenses.