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Over the period we have heard that Consumer Prices Index (CPI) inflation has dropped to 2.4 per cent, the closest it has been to the government target of 2 per cent since 2009, that unemployment has reduced by 8.27 per cent to the lowest level since mid-2011, and that retail sales volumes on British high streets are up 1.6 per cent in June 2012 as compared to June 2011.
Yet despite these figures appearing positive and suggesting the potential for shoots of growth to finally emerge from the dormant UK economy, the figure of -0.7 per cent GDP decline for the second quarter of this year (down from -0.4 per cent in the last quarter of 2011 and -0.3 per cent in the first quarter of 2012) shows they are still some way from baring any significant economic fruit.
Consumer confidence, as measured by GfK NOP, shows only a minor improvement with a level of -31 in the first quarter of 2012 shifting up two points to -29 in the second, still among the lowest levels seen since the global financial crisis was in full sway in 2008. This low level of reported economic confidence indicates consumers are likely to continue to delay major purchases where possible and seek out the best value offerings available when purchases are made.
Optical practitioners can be buoyed by the fact that optical markets continue to prove resilient over this time of economic stagnation/decline, with those product groups tracked by GfK (spectacle frames, contact lenses, care products and sunglasses) up a combined 1.4 per cent in the second quarter of 2012 as compared to the same period last year.
This growth has been driven by spectacle frames, the largest product group tracked, which has grown at just over 5 per cent in the second quarter to be worth over £207m. Contact lenses have also performed strongly, increasing value sales by 2 per cent to achieve a total market value of over £120m.
The associated contact lens care products have grown slightly ahead of contact lenses, at a rate of 3.6 per cent, achieving a market value just shy of £18m. Sunglasses, however, have seen their market value down by 39.3 per cent at opticians in the second quarter against last year.
This decline in sunglasses is primarily down to two reasons. First, the weather in the second quarter of 2012 has just not matched that seen last year. With less sun and more rain than the equivalent months in 2011, conditions for sunglass sales this year have simply not been as accommodating.
Second, there has been the success of sunglasses sales outside optical practices, with sales value coming through department stores and sunglasses specialists higher than that achieved through practices in every quarter since the beginning of 2011 and continuing to perform ahead of optical outlets.
The success of sales achieved outside practices highlights the opportunity for practitioners to more fully embrace sunglasses as a true fashion accessory, rather than more of an optical add-on, in order to replicate the success seen through the more fashion-led retail channels.
? Data quoted covers mainland GB optical practices only (chemists and supermarkets also included for contact lens care products).