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EssilorLuxottica Launches Legal Action Against Acquisition Target.

The Franco-Italian giant, EssilorLuxottica alleges that GrandVision has not been forthcoming in providing operating results in view of the COVID pandemic., in a legal proceeding launched July 18th. At issue is the financial impact of the COVID pandemic on business operations, and the possibility of renegotiating a new valuation based on a decline in revenues and profit.

EssilorLuxottica had agreed to buy the rival optical chain nearly one ear ago  by purchasing the 76.2 per cent stake from Hal Holding.

The Netherlands-based retail chain counters they are committed to finalizing the acquisition in the timetable specificed in the purchase agreement from one year ago.

A company statement responds, “GrandVision strongly disagrees with these claims and has responded accordingly. GrandVision continues to support EssilorLuxottica with the shared objective to obtain regulatory approval for the closure of the Transaction within 12 to 24 months from the announcement date of 31 July 2019”.

While the acquisition hopes to ad about 7,400 stores globally and more than 39,000 employees to the group. the agreement has been under evaluation by European competition authorities concerned it could lead to reduced competition and higher prices for consumers. European competition authorities are demanding that EssilorLuxottica sell retail stores in Italy and in either France or the Netherlands in order to finalize the sale.

Related articles on the EssilorLuxottica acquisition of Grand Vision. 

Italian Renaissance S.V.P.!

Italy has long been at the heartbeat of creative design for optical fashion frames. Optik Magazine contributor Jean-François Venne reports on the devastating impact of the COVID pandemic on the Italian frame industry. He spoke to four Italian companies, and discovered how the industry is only now beginning to show signs of emerging.

For the first time since its inception 30 years ago, Mad in Italy halted production mid-March. “We did it a week before the government gave the order, because it became clear that the situation was getting worse,” says CEO Yachal Mom. Some employees in Belluno, Veneto, continued to fill customer orders from home. Sales, however, have fallen off a cliff. Yachal Mom doesn’t expect them to pick up again anytime soon, even after the mid-May relaxation of stay-home orders.

“The pandemic struck at the worst possible time,” notes Giovanni Vitaloni, president of MIDO and ANFAO (National Association of Optical Goods Manufacturers). “The industry was getting ready to showcase its new collections and meet with customers at MIDO. Both promotion and sales suffered.” Mr. Vitaloni pointed out that 90% of Italian frames are exported and worldwide demand has collapsed. This is an unprecedented and totally unpredictable situation. Mr. Vitaloni estimates that the 800 or so Small and Medium Enterprises (SMEs) in the Italian optical industry will report a 30-50% drop in revenue.

At Blackfin, customer service and administration have continued to operate during the pandemic, but manufacturing has been at a standstill for more than a month since late March. Sales have dried up. “Orders from our key markets in Europe and North America suddenly stopped,” says Nicola Del Din, President and CEO. Blackfin’s production resumed on April 21, but at a slower pace. The eyewear manufacturer in the Veneto region of Italy accelerated the launch of its new collection by a month. “We want to show that we’re dynamic, quick and optimistic about the future,” says Del Din.

Mario Locatelli, editor of eyewear designer magazine, Blink, expects a slow recovery in frame sales. He points out that companies are dealing with the shock of the postponement of MIDO and Vision Expo East, without knowing if the next SILMO and Vision Expo West will go ahead as scheduled. “Without these major gatherings, eyewear manufacturers will have to find new sales channels,” he says.

Read the full article by Jean-François Venne, which is available in the June-July issue of Optik Magazine.

Click HERE to read the article.

US Study Finds Colour Deficiency Glasses May have Enduring Impact

A UC Davis Eye Center study, in collaboration with France’s INSERM Stem Cell and Brain Research Institute, published as a report in Current Biology, found that patented glasses engineered with spectral notch filters enhance colour vision for those with the most common types of red-green colour vision deficiency (“anomalous trichromacy”).

Notably, the ability to identify and experience expanded colour was also demonstrated when test subjects were not wearing the glasses.

At least eight in 100 men (8%) and one in 200 women (0.5%) suffer from red-green colour vision deficiency (CVD), totaling approximately 2.6 million in Canada and 350 million worldwide.

The study evaluated the impact of spectral notch filters on enhancing the chromatic responses of observers with red-green CVD over two weeks of usage. The filters (EnChroma glasses) are designed to increase the separation between colour channels to help people with colour blindness see colours more vibrantly, clearly and distinctly.

In the study of 10 male CVD participants wore the special filter glasses or placebo glasses. Over a two-week period, they kept a diary and were re-tested on days 2, 4 and 11 but without wearing the glasses.

The researchers found that wearing the filter glasses increased responses to chromatic contrast response in individuals with red-green colour blindness. It is unclear how long the improvement lasts without wearing the filters.

“Extended usage of these glasses boosts chromatic response in those with anomalous trichromacy (red-green colour vision deficiency),” said John S. Werner, professor of ophthalmology and a leader in vision science at UC Davis Health. “We found that sustained use over two weeks not only led to increased chromatic contrast response, but, importantly, these improvements persisted when tested without the filters, thereby demonstrating an adaptive visual response.”

The study authors believe the findings suggest that modifications of photoreceptor signals activate a plastic post-receptoral substrate in the brain that could potentially be exploited for visual rehabilitation.

Note:

Study lenses were provided by EnChroma.
One study author, holds shares in EnChroma. 

Link to full study HERE.

CEO Grant Larsen Leaving Eye Recommend

The Eye Recommend Board of Directors says that Grant Larsen is no longer Chief Executive Officer of Eye Recommend, effective July 14, 2020.

The cooperative will be led during the transition by an executive leadership team consisting of Shenif Kassam (VP Operations), Lee Raffey (VP Finance and Administration) and Nancy Dewald (VP Training and Events).

A statement from Board Chair Dr. Howard Dolman on behalf of the Board of Directors said Larsen “has built a talented leadership team and has contributed to the growth and success of the organization,” and wished Larsen “best of success in his future endeavours.”

Vision and Hearing, a Winning Combination

In this article, Jean-François Venne, Optik Magazine contributor, features a new business model: the combination of vision and eye care with hearing solutions. Three specific retailers are profiled.

This bimodal practice model has swept some European countries, especially since the creation of the retailer, Acuitis. Dozens of franchisees have popped up in France and the brand has also established itself in the United Kingdom, Italy and even Canada, where Sevan Kechichian opened the first Acuitis store in Laval in 2017.

The latter, however, closed its doors in July 2019, but still has a store in Saint-Bruno. Kechichian did not throw in the towel. In November 2019, still in Laval, he launched his own brand: Lunetis & Acoustis. He argues that in Quebec, unlike in France, patients begin using hearing aids very late in life, often in their late 60s. Everyone who comes for eye care is introduced to Acoustis services and receives information on the importance of hearing tests.

When he obtained his optician’s licence in 2005, Jason Cheema, owner of JC Optical and Hearing in British Columbia, already knew he wanted to open his own store. But very quickly, he began to think about differentiation. A colleague told him about a hearing aid practitioner program. Cheema decided to enroll in the program so he could get his licence and offer both services. In 2015, he founded JC Optical and Hearing in Surrey, British Columbia. Offering both services increased traffic in the store. Some patients purchasing optical services become hearing clients and vice versa, but people who come in for vision care regularly refer new clients for hearing services.

While setting up this type of business model remains relatively simple in other provinces, it’s not that easy in Quebec. Four professional bodies are engaged when optical and hearing activities are combined: opticians, optometrists, audiologists and hearing instrument specialists. Each is governed by its own professional order, whose main mission is to ensure public safety.

“It slowed us down a bit at first,” admits Benjamin Blaise, Quebec development director for Optical Center. The brand, founded in France in 1991, expanded to include hearing services in 2008. It now has more than 500 stores globally. Optical Center first opened purely optical stores when it arrived in Quebec in 2017 in order to take the time to fully understand the codes of ethics of the various professional orders and to ensure that it practises according to the regulations.

The company now operates three stores in the Montreal area, but has plans to expand.

Find out which companies plan on expanding and more in the June-July issue of Optik Magazine.

You can read Jean-François Venne’s complete article HERE.

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