Supermarkets pose a threat to the multiples

Market consolidation, supermarket expansion and the internet are all piling pressure on traditional optical retailers according to Verdict in its report into the £2.54bn optical market.

According to UK Opticians Retailing 2011, supermarkets have tripled their market share since 2005, while internet and legislative changes have changed the way some optical products are retailed. The four big optical chains and supermarkets have together seen their number of practices rocket. Between 2006 and 2011 there was a near 60 per cent increase in practices to 2,115. That increase will continue, with another 80 practices expected to open this year. Boots alone has identified 200 potential new locations.