Big player eyes budget market

Chris Beer, pictured at an Auckland OPSM, says cheaper prices could encourage more people to wear glasses. Photo / Martin Sykes

A battle in budget eyewear is brewing as a major player announces its entry into the value end of the market.

The owner of the OPSM and Sunglass Hut eyewear stores is planning a $30 million expansion in New Zealand and will open a budget chain.

Eyewear giant Luxottica - whose brands include Oakley, Ray-Ban, Chanel and Dolce & Gabbana - says it sees an opportunity to offer Kiwis cheaper spectacles.

Its announcement follows budget retailer Specsavers' move into New Zealand last year. That chain now has 16 stores.

Luxottica Retail's Australian-based regional chief executive, Chris Beer, denied the company was tackling Specsavers head on.

But he said research indicated that many people who needed glasses put off buying them and a more price-conscious offer could encourage them to act.

Even in developed countries like New Zealand and Australia "the awareness of eyecare and eye health can be significantly enhanced" he said.

The company had a long-term plan for New Zealand and the latest expansion was part of that.

"The world's at a tough place at the moment but it's not always going to be that way."

The new budget stores were likely to be its Australian brand Budget Eyewear, but the company was also in discussions with a potential local partner about a more uniquely New Zealand offer.

Over the next three to five years the company planned to open 40 budget stores, 20 to 25 more OPSM outlets and a further 10 to 15 Sunglass Huts.

The aim was to franchise around half of them. Luxottica did not plan to become a franchise company but wanted to offer a blend of opportunities to optometrists.

Beer said despite the recession Luxottica had achieved its sales forecasts in 2008 and was up in the first quarter of this year.

Specsavers managing director Graeme Edmond said Luxottica's move was a kneejerk reaction to his company's entry into New Zealand.

The franchise would have 20 outlets by Easter and 35 by the end of the year. Edmond said they had been amazed by the reaction from the New Zealand public and the optical industry and liked to think of Specsavers' launch here as the "optical revolution".

"For too long New Zealanders have been paying too much for their eyecare."

He said a single-vision pair of glasses at Specsavers cost $129, whereas a similar pair could cost up to $500 elsewhere.