Annual Report 2018

Strategic priorities

Our strategic priorities enable us to compete locally with global capabilities for the benefit of our customers.

We achieve enhanced profitability through operating leverage and efficiency initiatives, while driving strong cash generation and resilient growth. At our core we have created a perfectly delivered proposition that differentiates us in the market.

To maintain our leadership, we continue to enhance our proposition in line with evolving customer expectations.

GrandVision's strategy is based on five fundamental priorities.

1. Strengthen and deploy global capabilities

Having grown through acquisitions to become the global leader in optical retail, GrandVision has established a global headquarter that focuses on developing central capabilities, sharing knowledge and supporting its store network around the world.

We strongly believe that exchanging knowledge, using common business practices, and using a harmonized product range such as our Exclusive Brands, creates a better organization.

2. Drive comparable growth

We consider comparable growth to be the most sustainable and profitable source of growth, as it strongly leverages our existing cost base. Comparable growth drivers include volume growth in prescription glasses, growth in the sales of contact lenses and sunglasses, customer loyalty, and the evolution of our customer journey, including omni-channel features and e-commerce.

3. Optimize the existing store network

Market share growth is one of our main areas of focus and adding new stores to our network to further increase the proximity to our customers is key to achieving this goal.

Our approach includes targeted store openings, relocations, and refurbishments, as well as store closures in places where customer traffic patterns have changed.

4. Expand organically in current markets, and through bolt-on acquisitions

Most national optical retail markets are still highly fragmented, with a significant proportion of independent retailers operating either as single stores or relatively small chains. This provides the opportunity to expand through bolt-on acquisitions in existing markets and to integrate these businesses into our existing network.

5. Enter new markets through acquisitions or greenfields

We have a presence in over 40 countries and are always exploring ways to expand in new markets. We continuously evaluate the attractiveness of potential new markets by looking at macroeconomic factors, market growth and the local conditions for operating an optical retail chain.

In the coming years, our goal is to strengthen our global presence, especially in the United States and Asia.

Strategic accelerators

  • Turn customers into fans and increase their lifetime value: Our goal is to provide unique, high-quality and affordable eye care solutions to more and more customers all over the world and turn them into fans, and in doing so, to secure an undisputed global category leadership as THE destination of choice for eye care solutions, leveraging our best-in-class customer value proposition.
  • Create leading digital value proposition and boost e-commerce sales: Our ambition is to become a leader in e-commerce with more than 10% of e-commerce sales by 2023. To this end, we are investing in our existing e-commerce platforms and are actively looking for acquisition opportunities.
  • Boost end-to-end Product value chain and leverage economies of scale: In order to achieve these goals, we are in the process of transforming our Supply Chain into a true end-to-end product value chain – and capturing all opportunities, from better brands and products, to reduced lead times and inventory, increased margins and improved buying conditions, as well as strong and consolidated go-to-market mechanisms.
  • Create the organization of the future: We are aiming to strengthen our management organization in preparation for accelerated growth, for example, through talent management.
  • Strengthen market share through strategic acquisitions: We continue to see opportunities to capture additional market share in Europe through small bolt-on acquisitions and rolling up independents. We also consider pure-play online propositions, if and when there is added value for our customers or synergies with the existing business, and service and quality levels are not compromised.