News

08 August 2008

Making plans for Batemans

MagrathOnce the news leaked out in the first week of May that the Batemans optical chain, a 100-year old family concern, had filed for bankruptcy, speculation was rife as to who might launch a rescue bid to acquire its 75 stores situated largely in small market towns.

Then just days later came the surprise confirmation that Vision Express (VE) had acquired the family run firm for an undisclosed sum. The acquisition baffled some in the optical sector. VE represented the latest in 21st century trading with top-of-the-range consulting rooms, attracting the younger and more brand-conscious customer. In contrast, it was no secret that the Batemans practices attracted the more mature and conservative customer.

'A few eyebrows were raised when the acquisition went ahead,' said VE chief executive, Bryan Magrath, the man at the helm of the acquisition. 'It was interesting talking to some of the Batemans employees afterwards because their perception of VE was that we were a one-hour operation that was probably mid-to-low market and was focused on speed and volume. Some of that perception is from the legacy of our old incarnation.

'Vision Express has changed a lot in recent years - so from where we're sitting the cultural fit wasn't too big a jump. They are traditional the average age of their customer is probably older than that of Vision Express but both companies share a focus on quality and customer service. On that perspective the team here felt it was a match that really made sense.'

As reported in last week's Optician, the Batemans name, bar a few exceptions, will disappear from the high street within the next 24 months. Over next six to nine months, all Batemans practices will be refitted with new fasciae encompassing some element of the Batemans branding for a transitional period. The Batemans branding will be retained for those practices which would otherwise end up directly competing with an existing VE practice.

However, Magrath is keen to stress that the decision to phase-out the brand, in all but a few practices, was not taken lightly. 'We're not going to throw out the Batemans brand because it is damaged goods,' he said. 'Batemans outlets have incredible customer loyalty. They have customer records going back over 60-70 years which is a considerable achievement.

'There is also a lot of emotional attachment to the Batemans name. So we thought long and hard about the alternatives of branding the business. The conclusion that we came to was that they would work better under a VE banner although during the transitional period they will carry some elements of Batemans branding.'

Magrath points out that within weeks of the acquisition considerable resources have been invested to establish the status of every acquired practice.

'The first thing we did was to look at ophthalmic equipment in all the stores. We found that some of the equipment surveyed are museum pieces. Therefore, there is substantial investment going into bringing the ophthalmic equipment up to 21st century standards,' he explained.

'Surveys were also undertaken to ensure that stores didn't contravene health and safety standards. Many of them were found to either have health and safety issues or urgent maintenance issues. We have started work to resolve those problems.

'The third level of survey was to look at how we could optimise the performance of the acquired stores with new layout with investment in new fixtures and fittings.'

Following on from these surveys, over £1m has been set aside to upgrade the stores prior to transition to the VE branding.

Magrath was also keen to quash any suggestions that the average Batemans member of staff, who is likely to be mature with a long history of service with the company, may struggle to adapt to VE's modern working practices.

'I think we do a disservice to Bateman's employees in saying that perhaps some of them are rooted in old-fashioned practices. We recently rolled-out EpoS to all the stores and by and large they have taken to it very quickly.'

Magrath said there was a real keenness among Batemans staff to take-up the new technology. 'I'm confident that Batemans employees will pick up the VE training, add to it their own experience and come up with something special,' he added.

Lowering the age profile of the typical Batemans customer is also another priority for the company. 'Clearly we are looking to build the business for the future and therefore it makes more sense to try and move the age profile of the Batemans customer down. It hasn't always been an older customer base.

'We will be transitioning to the VE banner over a period of time in an orderly manner and we hope to take all the Batemans customers with us. We want focus on quality and customer care - values that are important to them. But we also want to add to that mix some VE type customers who are younger and more brand conscious to ensure the success of brands in store.'

Magrath is also dismissive of any immediate plans by the company to launch an online eyewear collection in line with services launched last month by Specsavers and Boots Opticians.

'We look at what the customer wants and not just what the competition is doing. My background is in the electronics sector where the impact of the internet has been huge because you are selling a commodity. But the optical sector is very different because you are dealing with patients who are very interested in the level of service they receive. You are also dealing with their health and therefore effectively dealing with something that has an effect on their life every single day which is why an in-store visit is a stronger proposition for them.

'I'm not sure what level of penetration online sales will have in this industry. There will always be people who will be motivated by price at any cost and buy online - but the percentage of them is much lower in this sector than any other,' he said.




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