By Cathy Ciccolella
Senior Editor

NEW YORK--The lagging U.S. economy is undoubtedly impacting consumer buying patterns and confidence about the future. Yet optical retailers and eyecare practitioners from around the country report that their profit levels are at least holding steady, if not improving slightly, this year, while their sales are projected to finish the year even with or slightly ahead of 2007 volumes. Executives of some optical laboratories, as well, said their labs remain busy, although they are feeling the pinch of rising costs, particularly shipping costs impacted by escalating fuel charges.

What the Survey Said
Consumers have been generally cautious in their purchasing this year, most indicated; just over 75 percent of the survey respondents said they are seeing consumers’ buying decisions impacted by recent economic pressures. Perhaps as a result, more than two-thirds (67.4 percent) of those retailers and ECPs say they are buying more conservatively now than at the beginning of 2008.

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Looking at overall sales during the first six months of 2008, 47.2 percent of the survey respondents said their first-half sales wound up 5 percent or more ahead of the same period last year, while another 31.6 percent reported sales volumes even with last year’s first half. Just 21.2 percent said their business in this year’s first six months was down by 5 percent or more compared to last year.  Retailers and ECPs are generally optimistic about second-half business prospects. More than half (51.8 percent of those answering VM’s survey) said they project a sales increase of 5 percent or more during 2008’s last six months, while 23.8 percent said they expected sales to be even with 2007’s second half; another 24.4 percent are anticipating a sales drop of 5 percent or more in the period.  Consumers are continuing to get eye examinations at a healthy pace this year despite the economy.  Nearly half the respondents (48.2 percent) said the number of eye exams performed in their store or practice was running 5 percent or more ahead of last year in the first six months of 2008; another 36.8 percent said the volume of exams performed during this year’s first half was even with last year’s rate. Just 15 percent reported a lower volume of exams in 2008’s first six months.