There are too many optical retailers in the UK, a lack of differentiation in the eyes of consumers and with little prospect of an upturn in business volumes some will have to close, Vision Express’ chief executive Jonathan Lawson told an Optix user group meeting last week.
In a keynote address: Multiples vs Independents? Room for both, but not all of us will make it, Lawson told 300 assembled independents: ‘In a lot of small towns I walk into there are an unsustainable number of multiples and Independents offering eye care. Will there be the same number in the future? I would be gobsmacked if there are.’
That didn’t have to mean a decimation of the independent sector he said. The outcome would be determined by the quality and value for money offered to consumers. A simple calculation by the customer of satisfaction minus price.
There was also a disconnect between what the consumers wanted and what the business offered he said. ‘The market absolutely lacks distinction. None of us [retailers] have communicated that information so consumers can’t single us out.’
This was all set against a backdrop of static footfall. ‘For multiples and independents to succeed they are going to have to go and get someone else’s share of the pie,’ he added. ‘Value for money is king. It’s not just about price, it’s satisfaction minus price.’ In optics that means having a quality of service and eye care expertise and a product at the right price.
He said the recent economic conditions had changed people’s attitudes. They expected better service and lower prices.
Earlier in the conference Paul Surridge, chief executive of Sight Care, said that in the last year 300 practices had closed their doors. He said the prognosis for independent practices was not good unless they worked together to protect the sector.
Surridge warned that today there were 2,500 full time and 1,000 part time practices, ‘In 10 years there will be fewer than 1,400 full time practices, but it doesn’t have to be that way’.
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