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By Marge Axelrad: Editorial Director
NEW YORK – The players within the “value” segment of the optical retail market have long adopted the approach of providing economical eyewear and eyecare choices for consumers, consistently targeting customers who are quality-conscious but searching for price options. This year’s ongoing economic recession has only fueled further growth for this positioning, as new attitudes drive consumer priorities.
In a special report last month, “A New Frame of Mind,” (See Sept. 7 Cover Story on VisionMonday.com) VM’s editors spoke to consumer experts as well as optical retailers and ECPs about this new mood swing. Included were the results of VM’s exclusive survey, with the help of Jobson Research, “Frame Purchasing Trends in Today’s Economy,” which reflected the shifting of assortments among many ECPs and optical retailers of all types.
The survey showed that 39.5 percent of the VM readers who responded said they are selling more ophthalmic frames at retail price points between $100 and $150; 33.7 percent are selling more frames priced under $100, while 56.4 percent are selling fewer at higher retail prices (above $300) compared to last year at this time.
While the general optical market copes with the changes, the market position—and sales—of “everyday low price” retailers have been gaining ground.
Lawrenceville, Ga.-based National Vision—whose retail operations include the America’s Best Contacts & Eyeglasses chain as well as leased optical departments inside Wal-Mart and Fred Meyer stores, and vision centers on military bases—acquired the 64-unit Eyeglass World chain of budget opticals from Vision Care Holdings in January. Then in June, National Vision opened its 224th America’s Best store, having doubled the America’s Best store count since acquiring the then-112 unit chain in September 2005.
“We plan to continue expansion,” said Reade Fahs, National Vision’s chief executive officer and president. “With our ‘two pairs of eyeglasses for $69.95 including a free eye exam’ offer, America’s Best has become the brand for the tough economic times we live in today. Now more than ever, people are seeking the best value in every purchase they make.”
Another everyday-low-price player, Wal-Mart Stores—whose “Save Money. Live Better” positioning has been very visible in a nationwide ad campaign throughout 2009 and particularly this Fall—has put its vision business into the spotlight with new, national programs that slash prices on contact lenses and children’s eyeglasses while simplifying the purchasing process.
The mass merchandise giant said its new program with 1-800 Contacts will save customers as much as 12 percent to 50 percent on the cost of a yearly supply of contact lenses. Additionally, Wal-Mart now offers frame-and-lens packages for children age 18 or under for as low as $39.
“Working with our suppliers and 1-800 Contacts, we have found a way to help our contact lens customers spend less and save more,” said John Agwunobi, MD, senior vice president and president of Wal-Mart’s health and wellness division. “By offering greater accessibility and affordability, we believe the customer savings could reach $400 million during the first three years of this alliance.”
With the youth eyewear program, designed to “help families during tough economic times,” Wal-Mart Vision Center customers can choose among 18 frame styles and colors for $10, in addition to other frame brands available at its everyday low prices.
Also finding a way to turn recessionary pressures more positive for both its customers and its own bottom line is 19-year-old Eyemart Express, set to open its 100th store this month. For an in-depth look at how Eyemart Express is playing its cards these days, see page 28. ■