5.7
HOW ECPS RATE THEIR BUSINESS-RELATED STRESS LEVEL IN 2022, ON A SCALE OF 1 TO 10.

“Finding staff [is our biggest challenge]. We have been running short-staffed since August 2021. It does not allow us to see as many patients and our ability to follow office protocols to give the best, most efficient care/service to our patients is suffering.”

—Regional Market Trends survey respondent

TOP 10 FRAME BRANDS NATIONWIDE (Q1 2022)

1. Ray-Ban
   (EssilorLuxottica)
2. Oakley
   (EssilorLuxottica)
3. Kate Spade
   (Safilo)
4. Nike
   (Marchon Eyewear)
5. Enhance
   (New York Eye)
6. Modern Optical
7. Marchon NYC
   (Marchon Eyewear)
8. EssilorLuxottica collections
9. Flexon
   (Marchon Eyewear)
10. Coach
    (EssilorLuxottica)

Source: GPN

PARTICIPANT PROFILE

For over a decade, Eyecare Business has been taking the pulse of eyecare professionals each summer to pinpoint up-to-the-minute market trends across the country, which we present in our July/August issue annually. To make EB’s exclusive findings even more relevant to you and your particular part of the country, we survey readers from coast to coast by conducting in-depth research divided by census region.

Conducted in June 2022, this year’s survey included a respondent pool made up of 61% optometrists, 36% opticians, and 3% frame buyers. Over a third (33%) have a single location, 41% are at practices with two to three locations, 26% had four or more locations.

The Northeast

How are ECPs on the East Coast picking up the pieces and gaining momentum?

The Northeast Census Region—one of four designated in the U.S.—boasts a population of over 56 million people, with a whopping 85% of residents living in an urban setting. It is also, of course, home to the nation’s largest metro area.

With a total area of just over 181,000 square miles, it is the smallest region. But this culturally diverse locale is an economic powerhouse—it accounts for 20% of U.S. GDP.

Hardest hit during the pandemic, the Northeast Region’s nine states are expected to lag behind the other three regions when it comes to full recovery. It’s not expected to return to pre-pandemic employment rates until next year.

But the outlook for independent eyecare professionals in the region is positive. In fact, ECPs in the Northeast are faring better than most other regions, with 55% saying their practice’s bottom line is up in 2022 compared with pre-pandemic levels in 2019. Moreso, a full 31% say that their bottom lines are up more than 10% for the year thus far over 2019.

55%
PERCENTAGE OF SURVEY RESPONDENTS IN THE NORTHEAST REGION WHOSE BOTTOM LINE IS TRENDING UP IN 2022 OVER PRE-PANDEMIC IN 2019.

IN FOCUS

Prices in the Northeast Region, as measured by the consumer price index, rose 0.6% in April. Though the smallest monthly increase so far this year, it does represent a YOY increase of 7.2%.

In focus in optical, a few key trends emerge in the Northeast:

Scheduling. More than any other region by far, ECPs in the Northeast are now scheduling patients hourly (52%, compared with a national average of 36%). Only 30% are scheduling visits in more than hourly.

Purchasing. ECPs in the Northeast have trimmed back product purchasing in all key categories for 2022. While 24% have no plans to change up frame buying, 37% say they have cut back by 10%, and 39% have cut back by 25% or more. The story is similar on the spectacle lens front—29% have stayed the course on purchasing, while 42% have cut back by 10%, and 29% have trimmed back by 25% or more. Even in the steady contact lens business, 46% say they’ve cut back by 10% and 15% by 25% or more.

Frame Buying. The Northeast has seen a spike in lower-end eyewear sales since the onset of the Covid-19 pandemic. ECPs here report that value eyewear is 26% of dispensary sales, the highest of any region—and 88% of respondents say that value eyewear sales have increased in the past three years. Surprisingly, 63% say high-end eyewear sales have decreased here in the past three years. A full 53% say that patients are buying more blue-light-filtering eyewear today vs. pre-pandemic.

Lens Buying. In terms of spectacle lenses, practices in the Northeast sell a higher percentage of both AR (37%) and tints (13%) than do those in most other regions. They also lean into Trivex (24%) and high-index lenses (20%) more than most of the other U.S. regions.

The Web. EB’s survey reveals Northeastern ECPs sell fewer products online than do those in most other regions. But, 81% say that they plan to sell products online within the next two years. This region’s respondents are savvy on the social media front—those posting daily (22%) to a few times a day (22%) combined is notably higher than any other region besides the South. Respondents spend more time than other regions for personal use on social media, with 24% spending three-plus hours a day on social.

The West

How Western ECPs are rebuilding business as Covid loosens its reins on the region’s economy

From the Rocky Mountains and beyond the Pacific Coast, the Western U.S. comprises 13 states—including Alaska and Hawaii—and is home to more than 78 million people. Though the most sparsely populated, it is the largest of the four designated census regions in the U.S., covering 1.873 million square miles.

With a total GDP of $5.619 trillion, the region contains the state with the largest GDP in the country—California with $3.36 trillion. But, like other regions, the West has seen colossal leaps in prices. Energy costs, for example, have jumped 31.7% over the past 12 months. On the other hand, some Western states, like California, are beginning to see a cooling off in home prices.

The optical sector in the West is recovering a bit slower than most other regions—a full 63% say their business is either flat or down in 2022 compared with pre-pandemic business levels in 2019.

38%
PERCENTAGE OF SURVEY RESPONDENTS IN THE WEST REGION WHOSE BOTTOM LINE IS TRENDING UP IN 2022 OVER PRE-PANDEMIC IN 2019.

IN FOCUS

As measured by the consumer price index, prices in the West rose 0.7% in April. That is up 8.3% from a year earlier.

In focus in optical, a few key trends emerge in the West:

Scheduling. As a result of playing economic catchup, more ECPs in the West (48%) say they are scheduling patient visits more frequently than one an hour.

Purchasing. ECPs in the West have also scaled back product purchasing in all key categories for 2022 over 2019 levels. While 30% say they will not change their purchasing plans for frames over 2019 amounts, 35% say they have cut back by 10% and another 35% have cut back by 25% or more. On the spectacle lens side, 29% will make no changes on purchasing from 2019 levels, while 48% have cut back by 10% and 24% scaled back by 25% or more. On the more stable contact lens front, a full 62% say they will cut back on buying over 2019 levels.

Frames. The West has seen a notable rise in midrange (73%) and high-end (83%) frame sales. Currently, midrange product accounts for 50% of dispensary sales and high-end specs account for 37%. A whopping 100% say they are seeing a rise in multiple-pair sales. Other categories on the rise include high-end sunwear (58%) and blue-light-filtering eyewear (58%).

Lenses. Optometric practices in the West sell more poly (33%) and Trivex (29%) than other materials. They also boast the highest percentage of practices where AR is the most-sold lens add-on (38%) of all regions.

The Web. ECPs in the West sell a decent number of products online currently (43% sell contacts), but only 69% of those that do not currently sell online plan to do so within the next two years, the lowest of any region. At the same time, ECPs in the West are the most social media-focused of all—33% post a few times a day, the highest of all regions.

The South

An insider’s view of the state of the market and economy for eyecare professionals in the South.

Home to some of the most racially diverse areas of the country, the Southern U.S. accounts for more than 127 million people, making it the most populated census region in the U.S. Covering 920,100 square miles, the region contains the most states—plus the District of Columbia. The biggest state in the Southland, Texas, delivered the second largest GDP in the country at $1.99 trillion, with the total for the region coming in at $4.715 trillion.

Today, the South is a region of extremes. In April, for example, Delaware recorded one of the nation’s highest unemployment rates (4.5%). At the same time, Maryland registered the biggest month-to-month decrease (down 0.4%).

How are ECPs in the South doing compared to those in the nation’s other regions? Recovery has lagged behind other regions. While 23% say their practice’s bottom line is trending flat in 2022 compared to 2019 levels, another 39% say their business is down.

39%
PERCENTAGE OF SURVEY RESPONDENTS IN THE SOUTH REGION WHOSE BOTTOM LINE IS TRENDING UP IN 2022 OVER PRE-PANDEMIC IN 2019.

IN FOCUS

The consumer price index reflected a 0.5% rise in prices over March and an 8.8% for the 12 months ending in April.

In focus in optical, a few key trends emerge in the South:

Scheduling. More than all other regions, ECPs in the South are scheduling patients more than hourly (two-plus patients per hour)—a full 55% compared to a national average of 43%. Only 28% are scheduling visits hourly.

Purchasing. Additionally, likely due to a slower recovery, practices in the South have cut back on frame product purchasing for 2022 over purchasing levels conducted in 2019 pre-pandemic. In fact, a full 40% have cut back by 25% or more, while 32% have cut back by 10%. About 25% have no plans to trim back frame product purchasing.

Frames. The South has seen the biggest increase in the high-end eyewear sales area—71% of ECP respondents said that they’ve seen an increase in high-end specs in their dispensaries in the last three years. Higher-end frames now make up 35% of dispensary sales, say ECPs in the South. One other area of opportunity is Rx sunwear—ECPs here say it accounts for 19% of total dispensary sales today, the highest of any region.

Lenses. In terms of spectacle lenses, practices in the South sell a lower percentage of both AR (30%) and tints (2%) than do those in other regions. They also lean into Trivex (23%) and high-index lenses (26%) more than most of the other U.S. regions.

The Web. The South has realized the potential of online sales. According to EB’s survey, ECPs in the South sell more products online than those in any other region. A full 40% sell Rx eyewear online and 52% sell plano sunwear. A whopping 98% say they plan to sell more products online within the next two years. Additionally, the amount of Southern ECPs who post at least once daily to social media rings in at 61%, with only 2% not posting at all.

The Midwest

A solid view of how ECPs in the heartland are faring as the economic recovery from the pandemic’s effects continue.

Nestled between the Appalachian and Rocky Mountains, the Midwest is home to more than 68 million people, with most residents living in Chicago—the third most populated city in the country. Also known as the heartland, the region spans 728,900 square miles across 12 states and accounts for nearly $2.188 trillion in U.S. GDP.

Eyecare professionals in the Midwest have experienced a positive uptick in business after pandemic-caused downturns, with 56% saying their bottom lines are up today in 2022 over 2019 levels prior to Covid-19. That’s the highest of any region­—just a hair above the Northeast.

56%
PERCENTAGE OF SURVEY RESPONDENTS IN THE MIDWEST REGION WHOSE BOTTOM LINE IS TRENDING UP IN 2022 OVER PRE-PANDEMIC IN 2019.

IN FOCUS

Prices in the Midwest, as reflected in the consumer price index, rose 0.5% in April. The U.S. Bureau of Labor Statistics also reports that, year over year, the index increased by 6% in April.

In focus in optical, a few key trends emerge in the Midwest:

Scheduling. About 40% of ECPs in the Midwest are scheduling patients more than hourly (two-plus patients per hour)—and 33% are scheduling visits hourly. Notably, 23% are scheduling appointment slots for longer than an hour.

Purchasing. Due to a more positive recovery in motion, practices in the Midwest have trimmed back frame product purchasing for 2022 over 2019 pre-pandemic levels less than most other regions, with 28% having no plans to cut back on buying at all, 33% cutting back by 10%, and 38% trimming back by 25% or more.

Frames. The Midwest has seen a stellar jump in midrange product sales in the past three years, with 93% of ECPs here saying this category has been on the rise. Today, it accounts for 56% of the dispensary product mix in this region.

Lenses. When it comes to spectacle lenses, practices in the Midwest lean into polycarbonate as the dominant lens material of choice, with 38% saying it’s their go-to. Midwest ECPs also sell a higher percentage of photochromics (40%) as their most-sold extra.

The Web. With a full 30% of Midwest ECPs saying they do not sell online, the highest of any region, this area lags behind on the digital front today. Still, 76% of those not currently offering products online do say they plan to sell online in the next two years, while 24% do not. ECPs here are also slightly behind the curve on social media, with 28% posting daily and 15% posting more than once a day.