The battle in budget eyewear retailing is hotting up as Specsavers announces plans to double its New Zealand presence and an Australian chain prepares to cross the Ditch.
British chain Specsavers entered the New Zealand market a year ago with promises of halving the cost of prescription glasses for Kiwis.
It has 30 franchised stores and says it will increase that to 60 in the next 12 to 18 months.
Group founder and chief executive Doug Perkins, now based at Specsavers' new Melbourne manufacturing and operations facility, said the company had experienced unprecedented demand for its services.
Although it started in Australia six months earlier the greatest demand for cheap eyewear had come from this side of the Tasman. "New Zealand was much more unaffordable ... . the most outrageous set of prices I had seen," he said.
Specsavers has shaken up New Zealand optics retailing with major player Luxottica, owner of the OPSM and Sunglass Hut stores, about to open its own budget chain.
It is bringing its Australian brand Budget Eyewear across the Tasman. The first four stores are due to open before the end of the year and another six will open in the first quarter of next year.
Chief executive Chris Beer said the first four would be company-owned to establish the brand and provide locations for training, but Luxottica was also looking for franchise and partnership opportunities.
Budget Eyewear's Australian product started at A$50 ($64) and the chain would be meeting Specsavers head on.
He believed Specsavers were no cheaper than OPSM. "We've been very polite for a long time, but their marketing campaign is pretty much a myth."
Perkins said Specsavers was offering cheap to mid-range glasses at half the price of its competitors, while those buying more expensive eyewear could expect to save $150. Its glasses started at $79, everything over $199 came with a two-for-one offer, and superannuitants got 30 per cent off, he said.
In comparison, a year ago in New Zealand the average cost of a pair of glasses was $550.
