Building On The Strength Of Growth In The Optics Market

Alliance Boots and D&A Merger

Alliance Boots’ merger of its opticians arm with Dollond & Aitchison will create an optical giant, but what is the view of the competition?

Some believe the integration will be far from straightforward and will lead to potential opportunities to steal customers.

Specsavers joint managing director John Perkins says: “All mergers have some significant challenges and it’s an interesting dynamic. Both businesses carry a great deal of franchisees and their needs may not be aligned with that of the merger.”

But Vision Express chief executive Bryan Magrath is more forthright. “In the short term, it is a great opportunity for us,” he says. “Boots and D&A will now face huge distraction in terms of merging two large businesses and closing stores, and we’ve got about 18 months to take advantage before the dust settles.”

What about the smaller groups and independents. In a market sector where personal service and presentation are key values, Bryan Magrath carries a persuasive argument for taking advantage of the current opportunity. The key is not to miss the window of opportunity.

Quality market leaders Vision Express reported that underlying profits were up from £15.6m to £18.4m in the year to December 2008.

The opticians did, however, reveal a slight dip in pre-tax profit – at £15m, down from £15.6m the previous year – as it factored in the costs of acquiring the 70-store regional chain GC Bateman, which were about £3.4m.

Vision Express chief executive Bryan Magrath said: “We had a very good year considering the current economic climate.”

He said that trade this year has been “up and down” as the industry has suffered from “February snow, a plague from [BBC business editor] Robert Peston and one of the worst Budgets ever”.

“Bateman strengthens our brand in the south of England and the two chains were similar – both were upmarket and offered professional eye health care. Bateman stores just needed to be brought up to the same standards as Vision Express,”

Despite difficult conditions the retailer is still hoping to open a minimum of 11 stores to add to its 329-shop portfolio and will consider additional acquisitions “if they are the right deals”.

It would appear that opportunities are still out there in the quality Optics market sector where the key players are observing the trends and still going for growth.

In the current times there are still many opportunities for the “far sighted” independent opticians to gain an edge on this market. Finding high quality shopfitting solutions to keep a practice fresh and enabling it to stand out from the crowd is one key area in which this can be achieved.

Building from 34 years of experience Ken Rand Partners offer the discerning and “far sighted” optician expertise in providing high quality shopfitting solutions. To have an idea of their services visit www.kenrand.co.uk and for their extensive range of furniture for storage, dispensing and reception areas www.kenrandfurniture.co.uk

About the Author

Ken Rand Partners have 34 years of experience in designing and fitting out retail, healthcare, education and commercial establishments. Based in Havant in Hampshire UK they have developed and enviable reputation for high quality shop fitting services along with a very extensive range of top end furniture covering receptions, boardrooms, retail, classrooms, libraries, consulting areas and dispensaries. They have excellent websites at  www.kenrand.co.uk and www.kenrandfurniture.co.uk

Laser Eyes by Vision Express