Francis Gros, Luxottica Head of Global Channels: “The global airport channel is quite unique, so we are adopting a new flexible model. This includes directly operated stores, outlets run by local partners or franchise holders and the newest approach where Sunglass Hut stores are run in partnership with the primary travel retail operator at an airport.”
Ross Falconer talks to Francis Gros, Luxottica Head of Global Channels, about the company’s growth plans for specialist retail brand Sunglass Hut at airports worldwide.
Q: There are over 3,000 Sunglass Hut stores worldwide. How many of those are located at airports right now and how important is the channel to the brand?
A: Airports are a core retail channel for Sunglass Hut and a priority in our global growth plan. At airports, Sunglass Hut generates exceptional sales productivity with a broad offer appealing to all passenger profiles. In fact, many of our top performing Sunglass Hut stores from the 3,000 that you mentioned are located at airports.
In 2014, we opened 31 new Sunglass Hut outlets at airports, taking the tally to over 140 standalone stores and kiosks in airports worldwide right now. This includes London Heathrow, Singapore Changi, Rome Fiumicino, Milan Malpensa and Hong Kong.
Q: With the bulk of your stores in domestic markets operated directly, do you apply the same operating model for Sunglass Hut at airports?
A: The global airport channel is quite unique, so we are adopting a new flexible model. This includes directly operated stores, outlets run by local partners or franchise holders and the newest approach where Sunglass Hut stores are run in partnership with the primary travel retail operator at an airport. Examples of this model include Dufry in Milan Malpensa, LS Travel Retail in Rome, and World Duty Free Group in Düsseldorf.
With a new Sunglass Hut airport store opening every 12 days in 2014, we seek new leasing opportunities at airports as part of our ambitious expansion plan for 2015 and beyond, and therefore with many different contractual and leasing scenarios at airports, a flexible model is vital. It’s a case of having open dialogues and finding the right solution for each airport location.
Q: What’s next in your ambitious expansion strategy?
A: There’s really no ceiling on the number of Sunglass Hut outlets that we could open in travel retail, as long there is commercial viability. We provide a great retail income to airports and passengers love our brands, love our products and respond very well to our distinctive store concept, which includes innovation such as the magic mirror technology.
It’s worth highlighting that Sunglass Hut is one part of an overall multi-formatting strategy that Luxottica is applying to the airport channel, as the sunglasses category leader.
Q: What is multi-formatting in the sunglasses category?
A: Multi-formatting is about executing the sunglasses category in different ways at different stages in the passenger journey through an airport, targeting different shopper needs and behaviours. In short, this spans a sunglasses department in the main duty free shop which is all about impulse, sunglasses in brand boutique which is all about the brand enthusiasts and a genuine brand experience, and the specialist standalone sunglasses shop which is about pre-planned purchases and the most definitive specialist sunglasses experience and service. Then we have the last-minute and arrivals stores for distress purchases, often of the bestsellers, and pop-up promotional concepts, which bring additional tactical visibility and interaction for the category.
Q: And finally, what role can multi-formatting have in driving further growth in the sunglasses category?
A: Multi-formatting is crucial to the future growth of the category, as we know from airports where it is executed best, such as Heathrow and Gatwick, we drive incremental sales and do not cannibalise sales from one point of sale to another. To fully realise the potential, I would like to see more airports integrate standalone sunglass stores into their retail mix, to complement our presence in the multi-category department store environment of the main duty free shop.
Of course, I believe that Sunglass Hut is a natural partner for airports as we are the world’s largest specialty sunglass retail brand with over 3,000 stores – recognised, trusted and loved by consumers worldwide.
About Sunglass Hut
Sunglass Hut is the largest sunglass specialty retailer in the world with more than 3,000 retail locations. As a global brand, it has built a reputation for housing the most comprehensive sunglasses range of bestsellers and new collections, from over 25 prestige brands. Part of the Luxottica eyewear group, Sunglass Hut stores are located throughout the US, Canada, the Caribbean, Europe, Australia, New Zealand, Hong Kong, Singapore, Middle East and South Africa.
