Gordon Tsai | Jonathan Ong

Keerthan Harish | Alexander Parker

Keeping You In Sight
13 Feb 2015

Deloitte PPT [Link]

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Agenda

Background Slides 3 - 4

Recommendation Slides 5 - 21
 Retail / Organizational Strategy
 Point-of-Sale System
 Talent Management

Timeline Slide 23

Financials Slides 24

Conclusion Slide 25
“[We want to] maintain [our] commitment
to creating fashionable and affordable
eyewear for customers.”
- Peter Westdale, CEO

Deloitte PPT [Link]

-4-
Competitive Landscape

Market Share Targets:

Luxotica and National Vision

We offer a cheaper designer

alternative to the traditional
luxury brand Luxotica

National Vision is our closest

competitor by target market
and pricing. Online
promotions allow customers
easier access to our product

Deloitte PPT [Link]

-5-
Recommendation

Twenty20 cares about YOU

Deloitte PPT [Link]

-6-
Recommendation

YOUR Eye health

Twenty20 cares about YOU

Deloitte PPT [Link]

-7-
Recommendation

YOUR Fashion
Twenty20 cares about YOU

Deloitte PPT [Link]

-8-
Recommendation

YOUR Budget
Twenty20 cares about YOU

Deloitte PPT [Link]

-9-
Recommendation

Retail / Talent
POS System
Organizational Management

Shift to younger, Fujitsu Global Drive

cost-and-fashion- Store POS meets accountability,
sensitive requirement for change company
customers light, retail-friendly culture
POS

Deloitte PPT [Link]

- 10 -
Strategy
Retail / Organizational Strategy

Three-pronged push to shift our focus onto a new demographic of younger

customers:

Health Fashion Budget

Inform customers about eye Introduce Richard Provide cost-sensitive

health and importance of Revamped (R-Squared), customers with affordable
checkups (ACA) customizable new line options

In-store eye-care specialists Invite guest designers to Introduce high-volume line of

design brands each year eyewear
(higher end)

Deloitte PPT [Link]

- 12 -
Why Young Customers?

Deloitte PPT [Link]

- 13 -
Why Young Customers?

20 – 25 $50,000 -
$100,000
year olds
income

Middle-income
young adult

Deloitte PPT [Link]

- 14 -
Why Young Customers?

Health needs Cost-

sensitive

Middle-income Growing
Frequent market
turnover young adult

Large online
population

Deloitte PPT [Link]

- 15 -
State-by-State Opportunity Index

% customers fitting our ideal profile

100% 0%

Deloitte PPT [Link]

- 16 -
Metropolitan Opportunity Index

Factors:
Population
Age
Kids
College
Income
Insurance
% customers fitting our ideal profile
100% 0%

Deloitte PPT [Link]

- 17 -
Strategy - Health

WHO?

25 million People will have access to vision services from

the Affordable Care Act in the next five years

15 million Young adults under age 26 stayed with their

parents’ plans in 2013

HOW?
Push the importance of yearly eye checkups through social
media and traditional channels

Offer discounts on eyewear to encourage yearly checkups

Send periodic reminders about checkups to increase
retention

Deloitte PPT [Link]

- 18 -
Strategy - Fashion

Richard Revamped
R-Squared: Your Taste, Your Budget.

Richard has proven success with younger crowd

Configurable color and frames

Build online platform to offer customization options

Guest Designers
Meet fashion needs of less price-sensitive crowd

Yearly rotating designs

41% of young adults prefer stylish, designer frames

Deloitte PPT [Link]

- 19 -
Strategy - Budget

50% Of consumers age 18 - 24 would replace glasses

more frequently if they were less expensive

R-Squared as a high-volume line, which will lower costs

Use prescription results to send personalized offers

Deloitte PPT [Link]

- 20 -
Technology
Comparison of POS Systems

Fujitsu Micros
Epicor Retail Microsoft Oracle
Metrics GlobalSTORE Systems
Store Dynamics Retail POS
POS Xstore POS

Scalability / Cloud

Online Integration

Depth of
functionality

Cost

Security / Reliability

Ease of use

Strong Weak

Deloitte PPT [Link]

- 22 -
Fujitsu GlobalSTORE POS

WHY?
Features tailor- Proven POS results Cross-platform
made to meet the for retailers (Mark & capability for
needs of a small to Spencer, Nordstrom) flexible
mid-sized retail implementation
company

Easy of use means Powerful promotion Enhanced data

quick training for platform will help security helps us
store associates push our health- protect patient and
centered discounts payment
information

Deloitte PPT [Link]

- 23 -
Fujitsu GlobalSTORE POS

HOW?

4 months Estimated implementation period

$600,000 Estimated implementation cost

In-store feedback about product design can be used by the design

team to create a Twenty20 that is more responsive to consumer taste

Deloitte PPT [Link]

- 24 -
Human Resource
Human Resources – Short Term Goals

Drive Accountability
HOW?
Team-based Merit-based
rewards system
Incentivize employees Promote employees
to sell as a team based purely on merit

Profit-sharing as a Promotion criteria

percentage of published firm-wide to
regional performance promote transparency

Deloitte PPT [Link]

- 26 -
Human Resources – Short Term Goals

Change Culture
HOW?
Team-based Emphasize
hiring core value
Incentivize referral Company’s core
system message of “Keeping
you in sight”
Retail location hiring
based on 2/3 vote Image as a socially-
conscious brand will
30-day trial attract top talent

Deloitte PPT [Link]

- 27 -
Proposed Restructuring

President
Alison Boyd

CFO COO CTO CMO

Mark Colfer Jason Nakamura Thomas Stuart Heather Sanchez

Director of HR Director of Strategy

Julia Feinberg Jonathan Khil

President, Contacts President,

& Eyeglasses President, Design Sunglasses
Division To be filled Division
Benjamin O’Leary Amy Powell

Deloitte PPT [Link]

- 28 -
Financials & Timeline
Timeline

1 2 3 4 5
Strategy & Operations

 Health Care Promotions

 R Squared Brand

 Guest Designers
Evaluation

Technology
Key Metrics:
 Point of Sale System
Revenue
Same-store sales
HR
Customer retention
Employee retention
 Short term - Accountability

 Long term - Culture

Deloitte PPT [Link]

- 30 -
5-Year Discounted Cash Flow

Deloitte PPT [Link]

- 31 -
Conclusion

Retail / Talent
POS System
Organizational Management

Jon walks in for a We keep track of his Increased teamwork

complimentary prescription and we fosters innovation,
checkup and talks send him a Jon’s comments are
with store team promotion, he buys sent to design team

Deloitte PPT [Link]

- 32 -
Recommendation

Twenty20 cares about YOU

Deloitte PPT [Link]

- 33 -
Recommendation

YOUR Eye health

Twenty20 cares about YOU

Deloitte PPT [Link]

- 34 -
Recommendation

YOUR Fashion
Twenty20 cares about YOU

Deloitte PPT [Link]

- 35 -
Recommendation

YOUR Budget
Twenty20 cares about YOU

Deloitte PPT [Link]

- 36 -