Luxottica enters Israeli sunglass market
Italian eyewear company, which has 7,000 stores worldwide, announces purchase of Israeli retail chain Erroca for €20 million
The deal, subject to the approval of the Israel Antitrust Authority, is said to be worth some €20 million ($28 million). It is expected to be finalized by the end of October 2011.
Luxottica plans to enter the Israeli sunglass retail market. Erroca's stores will be rebranded as Sunglass Hut, an international retailer of sunglasses and sunglass accessories.
"This purchase is strategically important for Luxottica, as it allows us to create significant retail presence in Israel, a dynamic market growing rapidly," said Fabio D'Angelantonio, executive vice president, Sun & Luxury Retail. "Erroca's positioning in the Israeli market definitely matches the Sunglass Hut brand's legacy and values."
"Israel represents a very important market for Luxottica," said Executive Vice President Wholesale Paolo Alberti. "Luxottica's strong commitment to its wholesale clients and to excellent service will not change, and may even improve in light of the positive effect of this investment on the entire industry. Through this move, Luxottica proves Israel's strategic importance for the group."
According to Erroca CEO Michael Wolf, "This is a real honor for the Israeli industry and the optics industry in Israel. Luxottica's entry is expected to create a revolution in Israel's sunglass market. The size of the collection and the variety of brands available in Israel are expected to grow dramatically while placing this entire industry in a worthy place."
The Wolf family will remain active in the market as a wholesaler and owner of the Einit company.
The decision to enter the Israeli market is part of Sunglass Hut's global expansion strategy in areas with a significant growth potential and many sunny days a year.
In 2011, Sunglass Hut entered the Mexican retail market by purchasing two chains – Stanza and High Tech – and opened its first stores in Brazil and China.
Luxottica has about 7,000 eyewear stores in North America, Asia-Pacific, China, South Africa, Latin America and Europe. The brands offered in the stores include Ray-Ban, Oakley, Vogue, Persol, Oliver peoples, Arnette and Revo, and licensed brands such as Bulgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren, Prada, Versace and Tiffany.
The group's products are designed and manufactured in its six production facilities in Italy, in two factories owned by the group in China, and in one factory specializing in sports eyewear in the United States.
The Luxottica Group's net sales in 2010 totaled €5.8 billion ($8.20 billion).
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