Specsavers, the world’s largest optometrist owned and led business, is investing $100 million to open 200 locations across Canada by 2024.
The company said the funds will cover 100 per cent of start-up costs for independent Canadian optometrists and opticians to launch community-based clinics and stores while creating 2,000 jobs across the country.
“We are placing a significant investment behind our offer of an alternative model that enables Canadian optometrists to put patients’ needs first while owning a thriving business and gaining access to cutting-edge technology,” said Bill Moir, General Manager, Specsavers Canada.
“By way of example, when Specsavers entered the Australian market, the advanced technology used by our professional partners doubled the national rate of detection of glaucoma, and increased diagnosis of other health conditions.”
Founded in the U.K. nearly 40 years ago by optometrist husband and wife team Doug and Mary Perkins, there are now more than 2,300 Specsavers locations across 11 countries caring for 41 million patients and customers.
Specsavers currently has four stores in Canada – Kelowna, Nanaimo, Coquitlam and Chilliwack. The first two stores opened in Nanaimo and Coquitlam in November.
The company bought BC-based Image Optometry in March 2021 and will start to transition more of them to the Specsavers brand. Moir said 12 more will be opening by April.
“The aim is to become the market leader in the country by the end of 2024 and in order to do that we will need to have a strong base of 200 stores and we’ll need to be in all the major provinces,” said Moir.
He said Specsavers’ intent is to reverse the current trend of consolidation in the Canadian market where a small number of large players – owned by financial institutions, frame manufacturers, or large corporate parents – now own many of the once independently owned optical businesses and clinics in Canada. Through this new investment initiative, Canadian optometrists and opticians will have an accessible opportunity to own a Specsavers clinic and optical store with the cost of establishing each business, which averages $500,000, covered by Specsavers.
Trevor Thomas and David Bishop of JLL are working with Specsavers on the store rollout including negotiating store leases.
“We’re ensuring that Canadian optometrists and opticians will be able to advance their careers through the best clinical equipment through professional development opportunities and also put in place a really comprehensive administrative and marketing and financial support for them to own their own business,” said Moir.
George Minakakis has spent over 20 years leading global brands in the Optical Industry.
“Specsavers entry into Canada has been anticipated for years. Their brand has been wildly successful in many markets. They have also been able to take significant market share rather quickly. Australia being one of those markets. Their business and consumer model, marketing and pricing strategies are an attractive value proposition to consumers. And favourable to single location operators that may want to join the Specsavers team,” said George Minakakis, principal of Inception Retail Group Inc., advising Businesses and Private Equity in the Retail, Restaurant, and Healthcare sectors.
“If their Australian and UK markets are any indication of volumes you can expect these locations to potentially generate $350-$500 million in revenue. That’s a lot of sales that will be stripped away from existing operators large and small. Most optical chains have moved consumers to the upper tier of eyewear spending and consumers have felt that they are overpaying. Specsavers will change that paradigm for many. Their focus on eyecare is just as good as any independent optometrist and retail chain.
“Capturing market share in Canada will not be a walk in the park. Most major chains will respond. Their strategies will need to be as attractive and more than a simple offer and brand message to offset the powerful marketing Specsavers will unleash. In the final analysis we will quickly see who is prepared to compete with them. My advice to optical retail chains: raise the bar on your talent and bring experienced people to the table. I also expect a few retail chains to come up for sale because of this new entry in the Canadian marketplace.”
