Oct 10, 2013
Luxottica puts importance on North America
Oct 10, 2013
North America is an integral market in Luxottica’s strategy with more than 4,800 stores in the region and 40,700 employees. In 2012 the Italian company’s number one market generated revenue of €4 billion ($5.3 billion), with a total of €7 billion across all markets.
At the company’s recent investor’s day held in Mason, Ohio, chief executive officer Andrea Guerra confirmed Italy and North America as the ‘two main roots’ of the company. “Luxottica has achieved unique positioning in the North American market as a result of its vertical and horizontal integration strategy,” he went on to say.
The eyewear industry in North America offers many untapped opportunities and is currently estimated to be worth $35.5 billion, with that figure expected to reach around $44-47 billion by 2020. As for the company itself, Luxottica Retail Optical North American (RONA) predicts annual revenue to weigh in above $3 billion in 2016, with current revenue reported at $2.5 billion. To support this growth, the company envisages investing $250 million in North America over the next three years.
This investment will be focused on the company’s two main U.S chains: optical retailer LensCrafters and Sunglass Hut, which recently opened its New York City flagship where the most advanced technologies turn shopping into a personalized customer experience.
Between 2010 and 2013, Sunglass Hut received $100 million in investment for the North American market. Looking beyond the U.S, Sunglass Hut’s global expansion is on track to become an over 4,000-store network, with the ambition to reach global sales of approximately €2 billion by 2016.
On Luxottica’s third quarter figures, which are due to be published at the end of this month, Andrea Guerra said: “Our performance during the third quarter was strong and aligned with the solid first half results. However, the further weakening of several currencies versus the Euro affected our result”
Amongst brands in the Luxottica portfolio are Chanel, Prada, Burberry and Polo Ralph Lauren.
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