Chapters
Annual Report 2018

Focus area 1: Improving the quality of life of customers and employees

GrandVision is a people-driven company that places the quality of life of its customers and employees at the center of its CSR Ambition. Our value proposition is based on our conviction that this contributes to the progress of each and every individual. It also reflects in the performance and development of their organizations and communities.

1.1. By being globally active

Being globally active gives us the possibility to contribute to the social challenge of providing access to affordable and high-quality eye care that many governments still face [see also: The world around us]. Healthy vision is crucial for the development of literacy and the educational standards required by developed economies.

By being present in more than 40 countries, including many emerging economies in Asia and Latin America, we are able to meet the growing demand for qualified optical specialists and help those most in need of eye care. In 2018, our worldwide store network totaled 7,095, compared to 7,001 in the previous year. This net increase was in line with our network optimization strategy.

[See more in: Segment Performance]

Store numbers (per segment)

Stores (number)

2016

2017

2018

G4

3,020

3,348

3,387

Other Europe

1,818

1,876

1,912

Americas & Asia

1,678

1,777

1,796

Total

6,516

7,001

7,095

1.2. By creating high-quality employment opportunities

GrandVision’s contribution to sustainable economic growth in local markets is further strengthened by the high-quality employment opportunities we create within our organization and our supply chain. We believe that offering professional training and fair pay are important mechanisms for alleviating poverty and boosting personal and professional development.

With our growing international presence, our average number of full-time equivalents (FTEs) reached 32,400 – which is around 2% more than in 2017. In total, we currently provide employment to more than 37,000 people of which 77% are in Europe (G4 and Other Europe Segments). Of all GrandVision's employees (total headcount), 88% has a permanent contract, while 12% is contracted temporarily.

GrandVision FTEs

2015

2016

2017

2018

G4

12,372

12,625

13,996

14,359

Other Europe

7,824

7,942

9,120

9,317

Americas & Asia

7,176

8,009

8,453

8,476

Other & Corporate

138

189

233

248

Total

27,510

28,765

31,802

32,400

GrandVision Headcounts

2016

2017

2018

G4

14,319

17,117

17,560

Other Europe

9,550

10,382

11,180

Americas & Asia

7,056

8,734

8,490

Other & Corporate

188

285

227

Total

31,113

36,518

37,457

The increase in FTEs in the Other Europe segment has been high in recent years due to our growing presence in those emerging markets. Entering new markets through acquisitions is part of our business strategy and contributes to economic growth in these countries.

The high level of qualification of our store employees and the high demand for qualified opticians and other vision experts in most markets is generally reflected in the level of salaries and wages we pay. We aim to pay fair wages through which we directly improve the livelihoods of our workforce and indirectly create a positive impact on economic development. In 2018, we paid a total of €920 million in wages and salaries to our employees. This is an increase of around 11% compared to 2017 and is accounted for by our growth in headcount and our need to compete for the best talent.

In 2018, our capital expenditure investments (excluding acquisitions) totaled €210 million – an increase of 6% compared to 2017. The majority of the invested capital was targeted at optimizing our existing store network. In doing so, we have continued to improve our employees’ work environment and enhance our operations to maintain a high-quality service for our customers. The capital invested in non-store assets supported our digital strategy and omni-channel capabilities.

Economic contribution (x € 1000)

2015

2016

2017

2018

Total capital expenditure investments

161,807

175,913

197,497

210,194

Total wages and salaries paid

745,703

782,743

830,338

919,713

1.3. By creating high-quality products

The safety of our eye wear products is a number one priority. Spectacles and contact lenses are medical devices, and as such, their quality and safety are strictly regulated. Nevertheless, GrandVision does more to ensure product safety.

GrandVision performs product tests to applicable ISO standards in internationally certified laboratories. These tests help to confirm that its products are safe and effective, as prescribed by applicable regulations. Our Quality & Regulatory division regularly engages with suppliers in order to continuously improve their processes related to product safety. Furthermore, GV Quality & Regulatory is a member of the ISO standards committees for eye wear products and recently joined regulatory medical device forums to play an active role in shaping future safety and effectiveness standards in eye wear products. In 2018, GrandVision concentrated on increasing first-time pass pre-market lab tests, improving performance by 25% compared to last year. Additionally, by means of supplier engagement and trainings we have improved the success rate of our product inspections in factories by 67%, resulting in fewer failed products and less waste, among other benefits.

In 2019, our main focus in product safety will be to align our processes and products with new EU regulatory requirements (2017/745) for medical devices. Our ambition is to also implement these in our non-EU countries. Furthermore, we have launched a new complaint-handling process that will help us improve our products, design, production and validation processes.