Internet Reading Glasses Growth

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Duane Reade is moving the racks from the back of the store to front locations, a move which may generate even higher turns.

When the retailers view the reading glasses category, service is coming into sharper focus.

Retailers have found that by infusing fashion and higher quality frames into the mix, they could capture more impulse sales. Aging baby boomers responded to the greater selection to the point that the category has been likened to consumable products. And at many chains that's meant double digit growth over the past two years.

Phil Kahn, executive vp, Personal Optics estimates that in dollars per square foot, reading glasses rate as one of the most profitable categories in the store.

"The category is becoming disposable," said Steve Hewes, buyer at Melville, N.Y. based Genovese. "People buy a few pairs for home, then they buy a pair for the car."

With so much consumer acceptance, how do retailers keep the right assortment of styles, colors and strengths in stock?

Stay in stock

"If you're out of stock, you're out of business," said Susan Lund, buyer at Minnetonka, Minn.-based Snyder's Drug Stores. Since the sale of reading glasses by drug stores was legalized in the state three years ago, Lund said the Magnivision glasses ranging in price from $14 to $18 that she stocks have been "selling like crazy." At this time, buying online can result in substantial savings.

Lund carries a mix of eight strengths in 10 styles in a floor stand near the pharmacy, a big assortment which, she says, suffers whenever she runs out of stock.

"We run ads once every quarter. We just finished a coupon book that offered $4 off glasses and we were completely wiped out after the promotion," she said.

Since the maintenance of the category depends most often on rack jobbers, retailers often feel frustrated in their goal to keep the category fully stocked.

"When I'm out of Maalox, I can call the wholesaler," said Robin Koon, buyer at Newport Beach, California based Horton & Converse Pharmacies. "But I can't get reading glasses from the wholesalers and the rack jobbers may not come in for six to eight weeks." Koon said the 19-store chain is selling about 200 pairs of Crown glasses chainwide per week and is pulling a 50 percent margin.

Service programs key

To counter out-of-stock problems, Magnivision has instituted Magniserve, a special service which employs rack jobbers to service stores. The service has gone from a regional service started four years ago to a national service.

"We're making over 30,000 service calls a month," said Howard Brauner, vp marketing for Magnivision. "We service high volume chains such as Duane Reade twice a week. We visit the Longs in Honolulu--the highest volume store in the country--even more often."

Said Joseph Agugliaro, buyer at Duane Reade: "We put Magnivision in the stores in November and we've already done a strong business. The best part is that we don't touch it. The rep comes in an orders merchandise, then it's express mailed overnight to the store."

Agugliaro said the chain is moving the racks from the back of the store to front locations, a move which may generate even higher turns.

Kerr Drug, one chain which had considered warehousing as a solution to out-of-stock problems, has opted instead to use Magniserve.

"Anything I would have gained through warehousing allowances I would have spent to keep up stock," said Chuck Bower, buyer at Kerr. "By the time I pick it and ship it, I haven't saved anything."

Bower said that Magniserve calls on Kerr stores once every three weeks to once a week, depending on the store's volume.

He said he's also worked with Magnivision to weed out slower moving items and to add newer styles.

"The average price for the glasses is $14.95. Last year we added a tinted bi-focal that retails for $18.95. This is one area where people don't shop around. They see it and if they want it, they buy regardless of price," Bower said.

He says he wouldn't think of stocking imports at $8.99; other merchants, such as Horton and Converse's Koon, said lower priced items have the swiftest turns.

"Our customer base doesn't really care about the fashion component," said Koon.

Fashion, however, is driving sales at chains such as Genovese, Hutchinson, Ks.-based Dillon Stores and Tuscaloosa, Ala.-based Harco.

"The rack has to be organized according to what the customer wants, but the mix also needs a splash of fashion," said Frank Gable, vp of sales at Harco. "The fashion element is driving multiple sales."

Harco carries the Better Vison Line, with glasses priced between $16 and $17. While chains such as Harco and Kerr hold price, Genovese discounts its $14 to $24 merchandise to offer customers everyday low prices.

"Our margins are still a strong 50 percent and up even though we discount," said Hewes. Hewes said he stocks 16 styles in seven to eight powers on a rack at the back of the store that holds 190 pieces.

Hewes advertises the category six times a year in circulars. Although Bower doesn't discount reading glasses, he does run 25 percent off promotions on his entire rack. Since the rack is placed near the pharmacy area, the promotions spark impulse buys from customers waiting for their prescriptions.

Harco's Gable said that rack presentation is also important to making a sale. "Customers need some guidance on their purchase. They need a selling tool to help them determine what they need," he said.

Ready-y-Vision is one vendor that's customizing its racks to retail outlets.

The line's parent company, Forrester & Vos, has developed a rack that holds 360 pairs of glasses.

Personal Optics has a twin-spinner display rack with an overhead mirror and information on how to select the proper lens strength.

Plus, Pennsylvania Optical is offering four new displays in two merchandising options (side hooks for dense stocking and half moon for a less dense presentation). The vendor's floor units accommodate 120 to 180 pieces.

Fashion is vision for reading glasses

Fashion is fueling reading glasses as baby boomers' vision dims, but their fashion sense remains in clear focus. Here's a sample of the wide range of products manufacturers are offering:  Pennsylvania Optical offers several lines segmented to different markets. Essential Eyes is a value line retailing at $10 to $14. Foster Grant Spare Pair retails at $8 to $22. The two high-end lines, Roberto Morelli and Studio Optique, retail between $30 and $35. * Opti-Ray offers a fashion line with a selection, appearance and quality similar to glasses found in optical stores but at a price range between $14 and $22. * Magnivision offers the Single Vision line priced at $14, a line of gradiant tinted bifocals priced at $18 and the Gold Collection, which features spring-hinged frames, for $24. * Personal Optics has a mid-priced line of metal and plastic frames priced at $9.99 to $11.99 and the DK Select, a fashion line with frames ranging from $14.99 to $17.99. * Select-A-Vision is offering a wide-range of fashion styles in all strengths. The company also offers accessories.

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