Sunwear Survival
Plano sunwear sales are soft in these tough
economic times. What can you do to beat the plano sunglass blues?
By Erinn Morgan
While the optical market has been somewhat sheltered from the United States' turbulent economic storm due to its medical nature, sunwear sales have not. According to Henry Lane, chairman of market research for the Sunglass Association of America, projected plano sunwear sales for 2002 are estimated to be down 3.1 percent compared to 2001. Future projections appear to be slightly better and bright spots continue to be polarized and other high-tech lenses, as well as fit-over styles for seniors.
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High-tech lenses are a bright spot in the market. Giorgio Armani style GA 2537 for Luxottica |
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"We are expecting business to be flat to up two percent for 2003," says Jim Pritts, executive vice president of the Sunglass Association. Units should be up by about 1.8 percent compared to 2001. What's more, the three O's have maintained their pricepoints with an average sale of $120 for plano sunwear compared to $119 the previous year.
Still, retailers of all shapes and sizes--as well as suppliers--are singing the blues about plano sunwear sales. Sunglass-only retailers have been experiencing decreases in business over the past year to two years. "Plano sunwear sales were growing by 8 to 10 percent a year until September 11," says Robert Rollett, owner of Shades of California, a sunglass-only retailer in Napa, Calif. "Since then business has been down about 10 percent over previous years."
While eyeglass and prescription sunwear sales are stable to growing, plano sunwear sales are soft. "Optical sales are growing," says Steve Anderieux, manager of Empire Optical in Santa Rosa, Calif. "Second-pair sales of prescription sunwear are also strong. But we are struggling with plano sunwear sales."
Is it time to give up on plano sunwear? Most retailers say no, and the strategies some of them are employing may help you get back on track with plano sales.
THE ROOT OF THE PROBLEM
A down economy, fear of terrorism, and the threat of war have consumers on edge. Instead of shopping for goods and services to enhance their lifestyle, many consumers are saving and investing in their homes.
As a result, some retailers who had invested in plano sunwear with new stores, better products, and strong staffs, are struggling to get a handhold.
"I am just getting killed in my sunglass stores," says Noall Knighton, president and CEO of the Knighton Optical chain, which has 27 stores in Utah, including a sunglass retail division called Sun 'n See with two store locations and two mall kiosks in the Salt Lake City area.
"They are cool, beautiful stores, and we have a great district manager. I don't know how I could do a better job managing them. The business is very soft. We are down 40 percent over last year," he observes.
With the current decreases in sales in the Sun 'n See stores, Knighton says he is barely covering the $4,000 to $5,000 per month in expenses. "I bought well for the holidays and hope that it will turn around, but we will see what happens," he says. "If it doesn't, I will have to close some of the sunglass stores down."
This sentiment is being echoed throughout the sunglass-only market. "We are not losing the business to another retailer--none of us are getting it," says Shades of California's Rollett.
His sunglass store in Napa has been hit not only by a bad economy, he says, but also by a slowdown in tourism. "Another problem here is that we are heavily tourist oriented," he says.
"Our shop is 60 feet from the Napa tourist center. Tourism is way down--people are driving to local vacations, or staying home and doing some remodeling to their house," Rollett adds.
Empire Optical's Anderieux also says that optical shops are in a precarious position with plano sunwear sales in the current environment. "Traditionally, independent opticians gave up the plano sunwear market in favor of eyeglasses and the customers went to Macy's or Costco for sunglasses." That becomes a self-fulfilling prophecy and makes consumers think an optical shop is not a destination for plano sunwear.
One other major factor affecting the plano market is the glut of product. Suppliers and retailers alike complain that they are overstocked. "Now there is too much product in the marketplace, and there's a glut in the malls, too," says Knighton. "Sunglass Hut is in there, Foot Locker with Oakley, a kiosk from Sporting Eyes, the Iacon store, and us."
There is, however, some good news for sunwear. Many stores are fighting back by working harder to draw customers and build business. Additionally, Knighton says there are consumers who are less affected by the economy and are still purchasing plano sunwear.
"I have three stores down 40 percent and one down 14 percent," he says. "The one that's doing the best is in a blue-collar neighborhood where people still have their jobs--they are still working and not feeling the stock market."
It's time to get back on the plano track. (Left to right) Bollé style Klug, Oliver Peoples style Speedster, and Hugo Boss style HB5786 for CXD (Charmant Exclusive Division) |
THE PLUS SIDE
There are still pockets of dispensers holding onto a stable business or even experiencing growth in the category. "My first two quarters of 2002 were phenomenal," says Linda Mann, owner of Shades Unlimited in Annapolis, Md. "But October and November were slow. My business is up 25 percent for the year. I am extremely happy the way the year has turned out."
Her secret to success? A focus on polarized sunglasses is her main difference, Mann says. "We are a polarized specialty store. Over 60 percent of our business is polarized. I educate the customer about the product and let them decide. I will take them outside with the glasses and even down to the water."
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Stores are fighting back by working harder. (Above) Dolce & Gabanna style 407S (left) and 406S for Marcolin. |
STRATEGIES FOR SURVIVAL
There are many ways to reach and service those people who may be interested in purchasing plano sunwear. Following are a few pointers.
Spread the word. The first step is to make them aware of your services and products. Some retailers suggest advertising as a means to attract business. "We spent a lot more money on advertising this year, because of co-op money we received," says Mann. "This has really helped. Mostly we advertise on Comcast cable--MSNBC, ESPN, and the Lifestyle Channel. We bought 1,000 spots for 2002 and will do 1,200 for 2003."
Others employ customer service as a means to spread the word about their business. "I do a little bit of advertising," says Rollett. "But my real strategy is to treat customers very well--thus word-of-mouth is my best marketing."
Flaunt what you've got. Window displays are another means to attract customers to your plano assortment if you have a street location. Placing your most appealing products in an attractive display will certainly entice customers to drop in and check out your selection.
Once they have made their way into the store, customers will be further impressed by a separate sunglass section within the dispensary. "Our dispensary is about 2,000 square feet," says Anderieux. "It is located in the front of the practice, just when you walk in the door, so it is the primary focus. In the dispensary, we have a separate section for sunwear. Some sunglasses have their own display. We also mix sunglasses in with the prescription eyewear frames."
Track stock. Stocking the right plano products for your clientele is also critical to making sunwear sales today. Are they into sports? Would your female clientele be more interested in high-end designer products or moderately priced conservative styles? Will they respond to the benefits of polarized, AR-coated, or polycarbonate lenses?
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Converse style Goalie from REM |
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Set up for service. Finally, while some dispensers lament the fact that customers are coming in for replacement lenses and parts instead of new eyewear, others are turning this business into a positive. "People are looking at different things now," says Rollett. "I am doing a lot of repairs and replacements. People are buying replacement temples and lenses instead of new glasses."
With a bit of patience and ingenuity, dispensers of plano sunwear can survive and, going forward, thrive. Make the effort to draw customers in. Offer a product assortment that includes high-tech lens designs like polarized and senior-friendly fit-over styles, as well as fashion and sport product. Then hang on tight--the ride should be over soon.
THE HEAVY ARTILLERY |
An edge is what every retailer needs in today's marketplace and Knighton Optical has made an effort to seek out that edge. It comes in the form of a unique training program entitled The Game of Work offered by a Park City, Utah-based company of the same name. "We are using them to beef up our business, especially sunwear," says Knighton. "I am going to stay in the game--it is an eight- to 10-week program--and see what happens. We will work it with the sunwear business." The program promotes the use of the basics of playing and competing in organized sports and translates these ideas into business. "It uses the same concepts used in recreation and sports," says Knighton. "They keep track of successes using a point scoring system." Knighton Optical will put 24 employees through the program, including some eye doctors. These employees will, in turn, work with other employees to teach the concept and Knighton will get the feedback--and keep score. "We are going to go on the offense here--this market is a roller coaster for everybody. But we are not going to sit around and whine; we would rather score touchdowns." Other clients who have successfully completed the program and integrated the tenets of The Game of Work include The Chicago Tribune, Marker Bindings, Wendy's, Sherwin Williams, Boeing, Coors Brewing Company, Quaker Oats, Ralph's, and Sysco. |