Milan, Italy—Luxottica Group, which owns and operates more than 2,000 Sunglass Huts in the world, just purchased Erroca, an Israeli chain of sunglass retailers.
Over time, all 63 Erroca stores will be converted to Sunglass Huts. Currently, Erroca carries their own private label as well as other brands.
Luxottica, which designs, manufacturers and distributes top sunwear brands like Ray-Ban, Prada, DKNY, Chanel and many others, already has a strong presence in Israel through its wholesale division. This acquisition, which it purchased for 20 million euros (about $28.4 million), marks its first foray into the sunwear retail business in the country.
“This acquisition is strategically important to Luxottica, as it allows us to establish a meaningful retail presence in Israel, a very dynamic and fast-growing market.” said Fabio d’Angelantonio, Luxottica Group’s executive vice president, sun & luxury retail. “Erroca market positioning is well in line with Sunglass Hut brand heritage and values: we do believe that, thanks to this operation, we’ll be able to strengthen the presence of our brands in the Country and to stimulate the premium sunglasses category overall.”
Paolo Alberti, Luxottica Group’s executive vice president, wholesale spoke about how the move would elevate the sunwear industry as a whole, undoubtedly to calm fears about the wholesaler’s increasing move into the retail market: “Luxottica’s strong commitment to its Wholesale clients and to excellence in service will stay the same and potentially improve given the positive benefits for the whole industry from this investment:
The entry in the Israeli market is part of Sunglass Hut global strategy of expanding in the so-called international “sun belt”, which includes regions with “high growth potential and a relevant number of sunny days per year.” In 2011, Sunglass Hut entered retail markets in Mexico, Brazil and China.