The American online retailer sunglasses company – Warby Parker is at an inflection end in its 12-year history. The company has been known on being a leader in direct-to-consumer – where businesses cut out middlemen to sell via their own retail outlet.
Warby Parker made its name by eyewear glasses online and undercutting incumbents such as Ray-Ban maker EssilorLuxottica by offering frames with a minimum price of $95.
After debuting on the stock market through a direct listing and seeing its stock soar that day, Warby Parker is now stepping aboard on the next leg of its voyage: it is shifting from selling services as well as glasses.
“We’re at this kind of interesting transition where historically we’ve been a glasses company and eyeglasses brand and now, we’re transitioning to becoming a holistic vision care company. Where, in addition to buying glasses from us … Now, an increasing number of our customers are also getting their eye exam and prescriptions from us,” said co-founder and CEO Dave Giloba.
The company’s customers spent an average of $218 each in 2020, up from $188 in 2018, and it expects revenue growth to come from customers who purchase progressive, or multifocal lenses, eye exams, and contacts.
The company said these “holistic vision customers” have the potential to spend $500 and up a year after their initial purchase, more than double the amount for a glasses-only shopper.
Additionally, physical outlets are another opportunity. Currently, Warby Parker has 160 locations in the U.S. and Canada, and Gilboa and has the potential to increase the number to 900.
