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The Changing Face of Independent Optometry

As Specsavers rolls out its regional consumer advertising campaign Specsavers co-founder, Doug Perkins announced the opening of store number 107 in Australia and says: "a further 50 stores will be opened before the end of 2008."

The optometric landscape in Australia and New Zealand is slowly becoming more corporatised (or quickly, depending on whom you're talking to) however, it is clear that independents still dominate.

In Australia there is reported to be 2800 optometric outlets or ‘doors', of which to date 905 are owned by small to large corporations.

Luxottica, the optometric retail market leader in Australia, with 517 optometric outlets (285 OPSM, 140 Laubman & Pank and 92 Budget Eyewear), continues to expand. The Safilo Group acquired the 44 Just Spectacles stores at the beginning of the year but remains tightlipped about further acquisitions. Big W now has 10 Big W Vision optical stores and Terry White Chemists are starting to make a noise about entering the optical market.

Smaller corporates are also on the hunt for strategic buy-outs with companies such as Eyecare Partners recently buying seven new practices to take them to 33 outlets; Blink Optical (36 stores), the growth of the Optical Superstores (50 stores); Paris Miki (30 stores); 1001 Optical (19 stores); Merringtons (30); National Pharmacies (19) and health fund backed dispensaries (11).

A quick calculation shows that there are currently around 1900 independent optometric outlets operating in Australia, with 590 of these members of a buying group (ProVision 401 members, Eyecare Plus 133 members, Optipro 50 members) not including members of the soon-to-be established Optometrists Co-operative.

Most industry leaders agree that whilst the industry is in a state of flux, for the independent to survive and thrive they need to "be better at doing business better", have a "strong value proposition and know how to execute it".

If an independent has a good value proposition there is no question their business will be successful. If not, they will either give up or be taken over.                                                       The Meaning of Independence
As the corporatisation of optometry in Australia and New Zealand continues, so does the changing nature of what we understand the meaning to be of an ‘independently owned optometry practice'.

An independent is someone who owns the brand of their business and is not managed or owned by another company. An independent has buying and clinical independence and can also have access to the benefits of a buying group.

However, Andrew Harris, the President of the Optometrists Association of Australia (OAA), believes the meaning of ‘independent' when it comes to optometrists must now be re-defined.

He says with the expansion of the corporations and more and more independents getting into
buying groups, the ‘independent' sole trader - is fast dwindling.

 "You really have to be part of a group to have a bit of muscle in the market place, but there are
a lot of suppliers out there which means you can still strike a bargain somewhere.

"The issues for optometrists are buying power, marketing power and for some being a franchisee is more convenient. That's why a group such as ProVision exists and has led that sort of structure for group buying.

"Buying groups all provide buying power and a whole lot of support for staff training, business
support and marketing support, but at least the marketing groups do all of this, but allow the
owner to run the practice as he or she sees fit," says Harris.