Independent opticians under greater threat as supermarkets grab share
Independent opticians are facing a greater threat from supermarkets and larger specialists.
Research by Verdict has revealed that independent opticians have come under extreme pressure as grocers have expanded into the market and quickly gained market share. Verdict estimates that non-specialists like Asda and Tesco will virtually triple their market share from 1.7% in 2005 to 4.7% this year. Even the larger specialist chains like Specsavers, which dominate the market, will be forced to compete with the supermarkets.
Matthew Walton, analyst at Verdict, said: “Opticians have been hit by consumers cutting back. Those who are still visiting the optician out of need have become increasingly price sensitive.”
One of the key reasons that grocers have been able to get a foothold in the market was a change to the law in 2005. As a result, consumers could be fitted for contact lenses at one optician but take their prescription elsewhere to purchase them. Grocers have since built on this by offering eye tests instore, and Tesco’s move to offer free eye tests to everyone who is not eligible to receive one on the NHS has only helped to increase pressure on independents.
Although the large specialist chains will continue to grow in the opticians market, they must look to improve their like-for-like performance, as expansion is not sustainable in the long term. As well as improving like-for-like sales, developing stronger customer relationships will prove important in the future and this is where independents are able to compete.
Mr Walton continued: “To survive and thrive, smaller independents will need to provide higher levels of service, either through offering something that competitors do not or through higher levels of customer service. Improvements could include offering home-based eye tests for elderly and disabled patients, or becoming a collection point for an online retailer.”
