Positive signs

While the general decline in optical retailing continues, the trend is slowing. All benchmarks are negative compared to last year, whereas all but sales of contact lens solutions have improved over July figures.
Eye examinations are up over 2 per cent from July's results, down almost 10 per cent from last August. The proportion of eye examinations that are NHS tests rose very slightly to 64.8 per cent. The annual decline in eye examinations is consistent at -4.5 per cent.
The total volume of dispensing is up, this month by 3.3 per cent. However, the figure lags last August by 8 per cent.
The volumes of all types of lenses improve this month. Single-vision, bifocal and progressive lenses are up by 2.3 per cent, 1 per cent, and 7.6 per cent respectively. Proportionally there is little change in share across the three types of lens monitored; progressive share has increased very slightly, by 0.6 per cent since last August. Over the year all types of lenses are seen to be declining averaging at -8 per cent, a slower rate than calculated last month.
Volume of reflection free coatings is up compared to July by almost 10 per cent. Again the downturn over the last 12 months is less than last month, -19 per cent compared to -22.5 per cent. This is the most notable downturn for AR coats since optician Index began.
The decline has continued for 12 months now, the closest similar decline being in 2002 to a maximum of -12 per cent over seven months. Back in 1995, annual growth was negative for 10 months and by -34 per cent at the worst point. Compare this to growth rates of 40 per cent as reported in 2000.
Dispensing rate is up at 68 per cent. This is above average for the year. Dispensing rate is calculated from total number of eye examinations and total dispensing, and hence does not take into account multiple dispensing.
New contact lens fits are up 6 per cent from July, down by almost 7 per cent from last August.
The trend is neither negative nor positive again this month, ie negligible change from the previous 12-month period on average, and it is impossible to predict how this will change over the next few months.
There is little change in solution sales from July, down 5 per cent from August 2004.
Total practice turnover results are up 1 per cent from July, yet down by 6 per cent from last year. The annual trend is still negative but yet again less so at under 1 per cent.
Turnover per eye examination shows very little change this month at 137. Last August the figure was 130. The average for the last 12 months is 132, up 5.70 from the previous year.
When comparing your practice with the results it is important to note that all our figures are equated to a 25-day month, so year-on-year, month-on-month we can compare equal time periods.
Please note all figures are adjusted to a 25-day month. August had 26 working days (excluding Sundays and UK bank holidays).
New contributors are always welcomed. Benefits of participation include customised graphs and comparisons, and contributors are able to make ad hoc enquiries, receiving feedback and results entirely free of charge. There is also the opportunity to benchmark other aspects of practice management or sales against the whole sample. The service is completely confidential.
If a practice would like to contribute to the Index please contact Louise Jarvis on 01622 851726 to discuss the benefits, no obligation, or by email to l.jarvis@business benchmarks.co.uk