Product profile

[Normal; adjective: conforming to a standard; usual, typical, or expected]

Companies are increasingly embracing size diversity – and we should too, writes Jayne Smerald

I have always had a genuine love/hate relationship with the word ‘normal’ when used in the context of people and life. Today, all of us are recognised as individuals with an almost unlimited variety of traits. Old-fashioned measurements are rapidly being replaced with common sense.

‘Normal’ is the common benchmark by which we all have been traditionally judged. If you were not near it, you were different. Does it matter if you are 4ft 10 or 6ft 10 inches, 80lbs or 250lbs? It should not matter but, of course, it does and has done forever. But changes are in the air.

Who has not looked at the sales racks in M&S over the years and all that is there are sizes 12 or under and the occasional size 24? What happened to all those size 16 to 18s? All sold out. There lies the driving force behind the changes we are seeing today: financial pressure and recognition that companies are missing out on those sales.

SIZE DIVERSITY Market pressure has, and is, influencing all markets today to recognise size diversity and understanding changes that are happening to the world of size. It has been gradual but recently there seems to be a strong focus on size diversity for women. There are more stores carrying dedicated collections for plus sizes as well as XL for men. There are numerous websites solely for the plus sizes, and the disposable income of these customers is substantial. The apparel market has recognised that they have been losing out.

Advertising campaigns now are starting to reflect this by using size diverse models throughout their campaigns. It is almost as if someone has finally decided to bring this market out into the open, and recognise it as a substantial one not being catered for.

Vogue magazine recently featured younger plus size women in its advertising, celebrating larger sizes in a positive light. Even television advertising is not focusing solely on models with perfect skin; perfect looks all wrapped up in a size six. Reality is the driving force behind these changes in all markets, and it seems they now recognise that the old ‘norm’ is not the ‘new norm’. Companies are embracing size diversity, as well as embracing diversity on many levels.

HOW IMPORTANT IS SIZE IN EYEWEAR? Based on both NHS and EC statistics, there are more women needing plus-size apparel than men – and the market is growing all over the world. Move that statistic into eyewear and it equates to one in six women who come into your practice who may need an extended fit frame. It is an exceptionally large number and up to now, no-one has created a dedicated collection that solely serves this market, focused on flattering shapes, styles, and colours. When it comes to style and trends, we women are more aware and influenced by them than most of our male counterparts.

What we learned from our research for our Big & Tall (B&T) Eyewear collection for men was the need for a modern, fashionable, flattering, extended fit women’s collection for all of us. The detailed knowledge we gained from our B&T Eyewear research, helped us understand the challenges of designing extended fit. It’s not just about

Customers come in all shapes and sizes

adding millimetres here and there. Our objective right from the start was that our collection should be feminine, flattering and give the wearer confidence.

We called our collection Made for You, because that’s how we wanted women to feel when they put on our frames: that they were ‘made for them’. We have used fabulous colours throughout the collection, with styles suited for casual to business wear. The collection features bold styling –driving this group of patients out of the fringes into mainstream, and mirroring the shift in apparel and High Street marketing.

SHIFT IN THINKING The Covid-19 pandemic has made us all look hard at our eyewear collections – and I believe a shift and a rethink is going on in independent practices. Practitioners are asking suppliers: do you have what I want or what I need? That is a question for everyone. I am as guilty as anyone of designing to my personal tastes, but does that translate into the products that patients need? Size and fit diversity, be it plus to XL to petite, gives practices that unique edge that cannot be found in department stores.

The NHS and EC statistics speak for themselves and we needed to translate this into our collection. As many as one in six women need plus sizes. This is not age focused either, as it is across the board starting from teens to mature. Young people today are taller and broader than their parents or grandparents ever were. This market need is here to stay. When understood, those needs must be reflected in all product offerings within practices.

ALL IN THE NAME B&T Eyewear has had a major impact on our company. As a ‘start-up’ collection, and in a short period of time, we have built a strong customer base for the range. This is purely down to patient needs coming from the

Made for You model MYE107 in Grey

practices. The brand name is certainly a ‘signpost’ name that needing no explanation. It has proved that there is a market in eyewear where size, fit and style really matter to your patients.

We actively ask our B&T customers to give us feedback. The most important comment they have is that the patient is happy with the fit, and on a surprising number of occasions that translates to multiple purchases at the same dispensing time. Maybe that is from the moment of relief when they find something that both fits and looks good on.

Loyalty is a major benefit because a patient who can now get frames for their size is far more likely to return and stay loyal to the practice. Personal recommendation is always a major factor in gaining new patients coming into anyone’s practice. Positive experiences across the board cannot be underestimated.

Made for You, our plus size collection for women was launched in February 2020. Even with lockdown around the corner in March, the momentum did not dissipate. We have recently expanded our marketing of the collections through more focused mailshots and social media. The collection caters for young to mature patients, is ontrend and, most importantly, the fit had to be our focus. Colour is a major factor

Made for You model MYE106 in Berry

through the collection of nine styles in three colours – and we will be launching six additional styles in the spring of next year.

As a strong advocate of size diversity, I have not ignored that all-important petite size need. This month, we launched a beautiful collection of six styles in three colours of Elizabeth Arden Petite Eyewear. The collection crosses over age ranges, so is not just for the mature market. Many of the colour mixes will work beautifully in the younger groups. Mintel recently reported that the mature market will grow 40 per cent in the next five years. For obvious reasons of course we are all living longer, healthier, and fitter lifestyles.

SIZE DOES MATTER I hope I have made my case that product ranges within practices should reflect this shift in all markets and embrace size diversity; and offer bold, inclusive styling, supporting the premium patient care our independent practices are known for.

The word normal it is starting to be less of a driving force in our lives, and less of a dominant focus when buying product into practice. We look at the individual and make sure there are sizes within our collections that accommodate the non-typical patient. It is the definition of independent practice: to have products that are not found elsewhere.

Covid-19 has thrown our everyday ‘normal’ out of the window. How we run our businesses and interact with patients – in every way and in everything – has had to change. In less than one year, we have all had to adapt our current working lives with rules that seem to change on an ever-accelerating basis. We will get through it, maybe not without a few bruises, but we will get through it together.

View our full ranges at www.atlanticoptical.co.uk. Email us on info@atlanticoptical.co.uk or telephone the main office number on 02920 362136.

Dominic Watson explains how to stay on the right side of the practice valuation equation in a surprisingly buoyant market

As an independent optical business consultancy, the team at Myers La Roche work on projects for around 200 different independent practices annually. The practices we work for represent a wide cross-section of the UK and Irish markets, and their owners commission us from the full spectrum of stages in the business ownership journey.

These stages include: • Pre-acquisition evaluation on behalf of first-time buyers • Practice turnaround and business improvement programmes/business health checks • Practice valuations for a number of purposes • Structured exit planning to add value and map out the optimal exit route via our

Exit 360 Pathfinder Service • Deal checking for parties who have been proactively approached by an acquirer

Our consultants use a highly data driven, strategic approach to all projects and, as a result, we are privy to vast amounts of data and have a unique insight and a genuine ‘finger on the pulse’ of the independent sector. This approach allows us to both accurately compare the performance of one practice against another, and to measure and monitor overall industry trends across a wide variety of both key performance indicators (KPIs) and accounting/financial trends and ratios, as well as real market data on prices and deal terms achieved on the transfer of the numerous optical practices we facilitate.

This unique dataset allows us to identify –at a very early stage – new trends across the marketplace and to help operators understand which trends are significant and which are simply noise or attempts at

We are in the middle of a deep recession

thought leadership from those with a vested interest. Our credentials and the authority of our data is widely acknowledged, and we are often called in to act as an ‘expert witness’ during legal proceedings for divorce, probate, partnership dispute and personal injury/loss of earnings cases.

This article will look at how current valuation models are very different to the old perceived norm and how, by understanding this, independent owners can avoid giving the crown jewels away by staying on the right side of the practice valuation equation in 2020 and beyond.

IN THE EYE OF THE STORM We are in the middle of a deep recession. Not just any old recession, a pandemic driven recession. Something that uniquely impacts the way we live our lives and is

The optical practice sales market is extremely busy

very visibly wreaking destruction on our High Streets and large swathes of our economy. A downturn with a set of circumstances that have no clear end-point, and where the rules and approach from our leaders are changing regionally and nationally on an almost daily basis.

Amidst all this uncertainty and chaos it would – at least on face value – appear to be logical to assume that practice transfer values and deal terms are much worse now than they were pre-Covid. Yet, the reality is vividly and very positively different. The optical practice sales market is extremely busy right now, even in the face of national and regional lockdowns. We appear to be in the eye of a perfect storm and instead of the doom and gloom that one would expect, deal fever abounds.

The reality for the current UK independent market is that practices typically change hands for between two and eight times earnings before interest, taxes, depreciation and amortisation (EBITDA). So what is going on?

Like any other market, the practice sales market requires motivated parties on both sides of the equation. On the selling side, the current main catalysts for sale are: • The perceived danger/risk to health or even life for older owners • The fear of the unknown and uncertainty: many owners are cashing in now, or hedging their bets with a part sale to take some money off the table • The discomfort and challenge of operating a practice in Covid-19 conditions, whilst the High Street around them crumbles • The herd instinct: “Everyone else seems to be selling up and getting out – or at least selling some equity – so maybe I should too whilst the going is good”

Covid-19 is a major catalyst for sales currently

On the buying side, the players come in different shapes and sizes. There are the large acquisitive groups, backed by external investors and awash with cash racing for market share and looking to capitalise on fear and uncertainty in the market. This has led to unprecedented levels of mergers and acquisitions, including joint venture offerings. The latter is a hybrid solution, which for some may potentially be the best of both worlds –but only if the seller receives genuinely fair value at the deal stage.

Then there are the smaller players seeking to expand, or to purchase any local independent competition that may be available – primarily for defensive reasons (i.e. to keep the multiples (mentioned above) out of their patch.) There are also first-time buyers. The first time buyer market is more active than we have seen for well over a decade. We believe this is down to a combination of: declining locum demand and day rates in a socially distanced world; and the new ‘no money down’ business purchase methodology pedalled by Jonathan Jay (and imitators) encouraging would-be buyers to bag themselves a ‘no risk, no money down bargain’ under the auspices of tax savings and other justifying rationale.

As a result of activity in all three market segments, practice owners are being contacted directly by buyers like never before. In the cold light of day, it should be pretty obvious that allowing a ‘would-be buyer’ to provide you with a ‘valuation’ and ‘exit planning advice’ is probably not going to be the most sensible course of action to get you the best outcome. However, many of the most proactive would-be acquirers are extremely sophisticated and persuasive in their dialogue and carefully crafted sales funnels.

Answer: There is no single hard and fast rule on this, but it is highly unlikely to be a three times EBITDA calculation that proactive purchasers will seek to tell you is the norm. To help illustrate this, recent deals achieved by Myers La Roche during the Covid-19 pandemic range from a little over two times EBITDA to as high as eight times. It is also important for an owner to understand that most of the deals Myers La Roche is currently agreeing are 100 per cent cash on completion – and not staged payments.

PROOF IS IN THE PUDDING ‘Saving’ yourself money by avoiding the use of a cutting edge, market leading broker suddenly does not hold quite the same appeal does it, if it is actually going to cost you a net balance of tens of thousands in the overall walk away deal terms? There is no secret sauce, but the proof is very much in the pudding.

Maximising the realisable sale value of your practice – in any scenario – is all about having sufficient knowledge and being in control of the conversation and the process; and in not allowing a prospective buyer to lead the negotiations. So how can you do this? Be sure to consult truly independent experts who are negotiating deals on behalf of clients day in, day out. Those who understand the true value of independent optical practices in your area, and who can create a competitive space for the marketing of your business, whilst respecting the need for utmost confidentiality.

In one very recent case study highlighted on our website www.myerslaroche.co.uk, we were able to achieve a deal value more than £90k higher than originally proposed, for a client who was approached directly by an acquirer and did not realise the true value of their enterprise. Needless to say, our client found engaging our services to be highly valuable with an irrefutable return on investment.

If you’d like to know more about the importance of understanding the true value of your business, please do get in touch on 0161 929 8389 or email

Dominic Watson has more than 20 years’ experience in the optical sector as a management and marketing consultant, business analyst and specialist business broker. His debut book, Retirement Planning, Rockstar Retirement Programme, was an Amazon bestseller in two categories and is now available as an audiobook narrated by the award-winning actor Michael Maloney.