- At a Glance
- Financial Statements
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GrandVision’s vision is to provide high quality and affordable eye care to more and more people around the world. In order to achieve this vision, GrandVision’s mission is to further grow and to achieve a market leading position in each country in which it operates and thereby create value for all its stakeholders and foremost its customers. For this purpose, GrandVision has established five strategic priorities to further enhance and capitalize on its global capabilities.
Strengthen and deploy global capabilities
While GrandVision has observed varying characteristics in the optical retail market at the local level, customer needs and the key drivers of the optical retail sector are very similar in most markets around the world. Based on this insight GrandVision has developed and is internationally deploying global capabilities.
Further enhancement of operational leverage through efficiency improvements and an ongoing focus on reducing complexity will allow for faster and more cost effective development of the Company’s business. GrandVision’s global capabilities will be leveraged in all markets and will benefit especially markets where it would have been difficult to develop these capabilities on a local level, due to either their size or level of maturity.
Drive further comparable growth
GrandVision considers comparable growth to be the most sustainable and most profitable source of growth, as it best leverages the existing operating cost base.
The key underlying drivers of comparable growth are: volume growth in prescription eyeglasses based on increased in-store traffic and in-store conversion rates, growth in the sales of contact lenses and sunglasses, an increase in average consumer spend through value added products and cross-selling, the transition to an omni-channel approach and the improvement of customer loyalty. Based on these drivers, GrandVision has developed the following strategic initiatives:
Professionalized customer journey
GrandVision has developed a professionalized customer journey concept for its prescription eyeglasses. This harmonized customer journey concept is aimed at delivering an improved customer experience with a focus on higher in-store conversion and higher customer satisfaction, resulting in long lasting customer loyalty. The customer journey concept includes a clearly structured commercial offering, a transparent pricing schedule and an assortment focused on functionality and quality. This customer journey concept is increasingly supplemented by omni-channel features. For its prescription eyeglasses category, the Company predominately targets volume growth and therefore market share growth, among other things by establishing a price leading position.
Contact lens sales have proven to be a strong driver of customer loyalty due to the higher repurchase frequency of disposable contact lenses in particular. Moreover, contact lens customers generally also provide various cross-selling opportunities. The short repurchase cycle and need for complementary contact lens care products and prescription eyeglasses also result in a higher average annual spend by contact lens customers compared to prescription eyeglasses customers. The market penetration in the contact lens category differs considerably between countries as a result of a lack of marketing and distribution of the product in some countries and regions. An approach which is comparable to the professionalized customer journey concept for prescription eyeglasses is now also being deployed for the contact lens category, including a new way of merchandizing, presenting and selling contact lenses.
Unlocking the potential in the sunglasses market
The sunglasses business is an underdeveloped category from an optical perspective, as sunglasses are predominantly marketed as an accessory or fashion item. The functional aspects of sunglasses, such as protection against ultraviolet radiation and glare, and the improved sight that sunglasses with prescription lenses provide in various situations, including sports, offer a still largely untapped potential. To systematically strengthen the sunglasses business, Solaris offers customers a complete product range in terms of price depth, brand variety and functionality, ranging from high quality, affordable exclusive brands to well known third party fashion brands.
Omni-channel customer journey
GrandVision is pursuing an omni-channel approach by integrating new technologies and applications for customer engagement and interaction, both online and in-store. The omni-channel approach helps GrandVision to stay aligned with evolving customer behavior and preferences in general, further enhancing its customer journey concept and driving comparable growth.
Optimize the existing store network
Market share growth via the optimization of the existing store network is one of GrandVision’s key ambitions. The Company’s approach includes targeted store openings, relocations, refurbishments but also store closures, where customer traffic patterns have changed.
Generally, GrandVision pursues the expansion of its existing store network in countries in which there is a proven and profitable store format with a low density of stores and countries in which there is a strategic growth ambition. In other countries, store openings and acquisitions are more selective and limited to when “white spot” opportunities become available. As a prerequisite for expanding its store portfolio, GrandVision carefully assesses each business case with a focus on the potential return on investment, the existence of an operational and organizational platform to support the growth, and the establishment of financial and internal controls and good governance practices.
Unlock potential in current markets through acquisitions
The optical retail market is characterized by a high level of fragmentation and a high proportion of independent retailers operating smaller or single stores. GrandVision expands through smaller or larger bolt-on acquisitions in existing markets and then integrating these companies.
The Company continuously reviews potential acquisition candidates and pursues opportunities once a sound business case has been established for such acquisitions. These opportunities are pursued both in mature and emerging markets. Furthermore, GrandVision also pursues pure-play online propositions, such as Lenstore.co.uk in the United Kingdom, if and when there is added value for its customers and service and quality levels are not compromised.
Enter new markets through acquisitions or greenfields
While GrandVision currently has a presence in 43 countries, it is pursuing further expansion to new markets, in particular emerging markets. For instance, in 2014 GrandVision entered the Chinese, Peruvian and Turkish markets.