Annual Report 2020

Our strategic priorities

Our strategic priorities allow us to compete locally with global capabilities designed to enhance our customers' benefits.

They enable us to enhance profitability through operating leverage and efficiency initiatives, while driving strong cash generation and resilient growth. Our proposition differentiates us from competitors in the eyecare market, thanks to our state-of-the-art retail network, unique product catalog, digital capabilities and global economies of scale.

We maintain our global leadership and enhance our proposition to meet our customers’ needs. To do this, we have based our strategy on five fundamental priorities.

1 Drive comparable revenue growth

We want to achieve comparable growth by providing unique, high-quality and affordable eyecare solutions to customers worldwide, as well as through e-commerce sales. We put a strong focus on offering a best-in-class customer value proposition, including our omnichannel customer journey, attractive product assortment, and pricing and expert customer service. Our strategy is to position ourselves as the global eyecare leader and continue to boost customer trust and loyalty.

2 Optimize the existing store network

We want to establish and retain destination shopping status for our entire GrandVision store fleet. This is why we have created a stronger platform for customer engagement and comparable growth, and launched a new contemporary store concept.

In addition, a main area of focus is to achieve a stronger market position and add new stores to our network to further increase the proximity to our customers.

We also consistently evaluate GrandVision stores using a set of parameters that range from location attractiveness to financial performance, the 'store profit contribution.' This globally-standardized KPI set is the basis for our targeted store openings, relocations, refurbishments and closure decisions.

3 Accelerate growth through our digital capabilities

We aim to become an omnichannel eyecare leader by achieving more than 10% of our sales from e-commerce by 2025. Our enhanced omnichannel tools include advanced online appointment bookings, store locators, mobile-first websites, an advanced Customer 360 CRM and an omnichannel customer service desk platform. These allow us to better connect with customers at different points in their customer journeys, online and in stores.

We also focus our attention on driving the growth of digitally-influenced store sales. This ensures we have the right online presence and services to engage consumers in the digital world and attract them into our stores.

4 Leverage global economies of scale and skill

We optimize our operations to ensure the most efficient worldwide optical retail operating model. To do this, we believe in the symbiosis of local market management supported by strong, global economies of scale.

Throughout GrandVision's history, we have added many new businesses and markets through acquisitions, which has led to strong growth and an even larger international footprint. All individual retail brands have strong operational capabilities. However, in light of accelerated industry consolidation and new strategic challenges from digital and vertical mono-brand concepts, we have been deploying increased global capabilities to create necessary economies of scale.

The focus of our central activities is to install overarching digital systems and knowledge, and to create and operate a global end-to-end value chain. These include a harmonized product catalog and procurement, as well as globally standardized processes and systems deployment.

5 Achieve lead position in all markets where we operate

We want to accelerate profitable growth and outperform our competition. To do this, we are consolidating our positions in every market where we have a presence worldwide.

A rendering of the standardized store concept

Our six strategic accelerators

Our people play a central part in our transformation journey. We invest in our omnichannel and end-to-end Product Value Chain capabilities that are embedded in GrandVision's six strategic accelerators:

  1. Turn customers into loyal fans and increase their lifetime value: Our goal is to provide unique, high-quality and affordable eyecare solutions to customers worldwide. We leverage our best-in-class customer value proposition with a strong focus on employee training, store and product renewal and incremental conversion through our omnichannel platform. We also ensure flawless strategic enabler execution in stores, through digital channels or our Customer Relationship Management (CRM) platform.
  2. Create leading digital value proposition and boost digitally-influenced business: Our goal is to develop one central omnichannel e-commerce platform that integrates our online channels seamlessly with physical stores' operations. We will supplement this with our innovative online appointment booking system, Customer 360 CRM and a data-driven marketing personalization platform, combined with e-fulfillment capabilities. We not only provide sophisticated digital platforms for our retail brands, but also offer hands-on digital performance marketing (SEA, SEO, display ads, paid social media), a digital content factory, conversion rate optimization, e-merchandizing and a variety of related digital services and training for local retail brand teams to help them achieve best-in-class omnichannel business results.
  3. Boost end-to-end Product Value Chain and leverage economies of scale: Our goal is to operate the most efficient optical retail global Product Value Chain. The transformation process ranges from consolidating suppliers and manufacturing sites to creating globally standardized assortments, as well as establishing showroom models in every store to create better data transparency and management processes worldwide. We increase margins, improve buying conditions and develop effective international go-to-market processes. Our standardized IT infrastructure helps to provide agility and efficiency. We also focus on installing global digital systems and knowledge, creating and operating a global end-to-end value chain, including our Exclusive Brand products and procurement, as well as deploying standardized processes and systems in all relevant areas.
  4. Transform to lean operating model: Our goal is to further deploy the transformation of our operating model throughout GrandVision, which is enabled by points two and three, mentioned above. To achieve this, we accelerate the standardization and simplification of processes across GrandVision in all areas. We also deploy standardized IT system support to reduce operating costs and eliminate process and procedure duplication and complexity.
  5. Expand in high-potential markets with proven operating model and bolt-on acquisitions: We want to continue growing organically through bolt-on acquisitions in markets that are proven to embrace our operating model. We will also selectively consider new market growth.
  6. Increase eyecare expertise and technology: We invest in technology such as remote optometry, advanced eye health scans and online eye tests. We prioritize these services to reinforce our eyecare expertise in the industry through our Eye Care Council, which will further enhance our reputation as a global eye health leader.