NEW YORK—With the fourth quarter underway and Vision Expo West beginning this week, a recent spot-check of America’s optical retailers reflects a conservative increase in business year-to-date.

When VM questioned various regional and national U.S. optical players about their business results for the first half of 2010 and predictions for the coming year, the general sentiment among them was hopeful if still reserved. The majority report that as the economy slowly improves, customers are returning to their stores for product that is less necessity-based than it was this time last year. Several ECPs reported customers’ desire for “value” - with each providing a slightly different definition as to what that means for their particular business.

Ira Haber

“Customers who can and do buy will spend a little more, but they want a better product. You can sell a well-made product at a high price, but it must be good stuff,” said Ira Haber, president and CEO of the Colorado-based Europtics which has four locations along with online store Europtics.com. “Our average price on a pair of glasses after discount is about $500,” he added, “but our cost of goods has gone up considerably.” According to Haber, the current economic climate is still tenuous; however, he believes that customers are willing to make purchases “if they have sold themselves on the value of their investment in our product.”

Bill Jehling 


Clarkson Eyecare, a St. Louis company with 50 offices, two Lasik centers and a lens lab, has seen similar results so far this year. President and CEO Bill Jehling said that while he has noticed a rise in customers who are more focused on value and price, he forecasts a conservative increase in sales across the board into 2011. “The worst may be over but increased economic activity overall will be very slow happening,” he explained. Business YTD is “very good” compared to this time last year, according to Jehling, and sales are up over 2009.

For Doctor’s Vision Center, 2010 brought changes in promotions, admits Sherrie Rogerson, director of marketing for the 49-location retailer based in North Carolina. “We have communicated product offering differently, assuring patients are aware of value products and packages,” she said, pointing out that actual product mix had not changed.

Sherrie Rogerson 

Rogerson said that 2010 is out-performing the previous year at Doctor’s Vision Center, “especially in Q3,” with plano sales around 4 percent and prescription sunglasses about the same.

Haber reports that while units are down from 2008, they are up 2 percent from 2009. “We are selling more expensive product and our insurance sales are up 35 percent in units,” he said, adding that Europtics is now at 17 percent insurance. “The uptick in frames is with high end frames manufacturers.” Haber named Barton Perreira, Salt and “some European manufactures that don’t sell much in the States.” As for lenses, Haber said that three quarters of Europtics’ progressives are “free form from Zeiss, Shamir, Maui Jim and Seiko.” He went on to say that single vision free forms are improving in sales while three-piece drilled rimless are in a decline. “High end A/R coatings are on 95 percent of our lens sales,” Haber added.

“We are seeing trends toward moderate to moderate-high purchase of eyeglasses with trends towards recognizable brand names,” Rogerson said. For lenses, she added, “Patient are willing to purchase the right lens for their visual needs and in most cases, that includes premium progressives. Maybe some trade off on material and photochromics but [there are] strong sales with non-glare lenses.”

Going forward, retailers look to the November elections. “Low interest rates are helping as it relates to our cost of borrowing but not helping the housing industry locally. Our region is very nervous about government spending and debt and is cautious about big ticket spending. Elimination of tax breaks at the beginning of next year is keeping many on the edge and cautious,” Jehling said.

James A. Stephens

In projecting 2011, James A. Stephens, OD, FAAO, CEO of The Hour Glass, agrees. “The economic recovery in each of our markets depends largely on the November elections,” he said. While he admits that business for the 9-locations - spread out through Georgia and northern Florida - is relatively flat this year over last, the company expects “to see some small increases over the next few months.” Stephens said he’d like to see at least a 5 percent increase through the end of the year and currently projected an 8 percent increase for 2011.

“We have increased the purchase of excess inventory frames from our primary frame vendors,” Stephens said of The Hour Glass’ altered strategy. “Additionally, we switched to an offshore lens vendor for our premium ‘backside surface’ lenses.” In doing so, Stephens admits the company was able to decrease the cost of lenses significantly and “flatten out.”

 Gordon A. Bishop

But The Hour Glass wasn’t the only retailer to make structural changes this year. Sunland Optical - which currently has 37 locations on military bases across the U.S. - set out to re-engineer their product mix, according to president and CEO Gordon A. Bishop. “We adjusted our price points slightly to add value to our customer,” he said. In doing so, Bishop explained, Sunland Optical is selling similarly-styled frames at the same price, something he says has helped customers understand the product better and has helped staff in making sales.

“All consumers including myself have changed in not only our shopping patterns but our perspectives on how we spend and save,” Bishop said. “This change in sensitivity is real and is not just going to revert back. There are too many economic issues out there that weigh on the consumer’s mind: housing, job security, health care, family, politics, etc. We have all changed and we as retailers better have changed too.”

dpaunescu@jobson.com