Commerce in consumer products - Fielmann's growth will be propelled by eye care and U.S. business endeavors.
Germany's biggest opticians chain, Fielmann, aims to increase its collaboration with external eye specialists to provide eye examinations in their stores. According to Marc Fielmann, the CEO of Fielmann Group AG, there might be a startling rise in age-related eye diseases by 2030, potentially affecting ten million people annually. Ironically, there will be a decreasing number of ophthalmologists serving this rapidly growing demand, leading to long waiting times for patients, especially those with statutory health insurance. In certain regions in Germany, they might have to wait up to six months to see an eye doctor.
To address this issue, Fielmann and a startup, Ocumeda (founded by ophthalmologists), have devised an eye checkup. Currently in a pilot stage across some Swiss branches, the process involves taking all necessary measurements in the store, sending the data to an ophthalmologist who suggests the next steps based on these, and then promptly conveying the results to the customer within three to five working days. This swift access to healthcare helps patients seek immediate treatment and a far more timely detection of diseases. The eye test service, costing 49 euros, is currently available in 129 German and Swiss Fielmann branches and is set to reach 400 German and 36 Swiss branches by the end of this year. The startup has ambitions to expand in the US, too, where the market is the largest globally, with 167 million people wearing glasses and a massive $76 billion industry. However, Fielmann cites lower waiting times and greater transparency in eye care services as recurring issues that make customers unsatisfied.
Fielmann believes the US could be the perfect market for them to expand, given these issues. With SVS Vision and Befitting previously acquired, Fielmann now manages 82 US branches and rounds out a local turnover of $110 million. The company's ambition is to grow in the US from Michigan (where they are already the leaders) across the northern Midwest, reaching $300 million sales by over 200 branches. Foreign business now accounts for approximately 35% of the group's total share. According to Fielmann, they aim to maximize its share to 50% in the long run.
The company predicts high growth for 2023, with expected sales and profits rising. Last year, Fielmann saw a growth rate of 12% and achieved an EBITDA margin of 20.8% or $410 million. While the first quarter saw a noticeable impact due to subdued consumer sentiment, the operational result expanded by 11%, to €117 million. Pre-tax profit increased by 7% to €62 million compared to the previous year.
CEO Marc Fielmann is optimistic about their prospects in Germany, where there's a growing need for varifocal lenses, contributing to profit growth.
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Source: www.stern.de
