Edward Beiner

Could Eye Merger,

Acquisitions

By Richard Collings

Published: March 15, 2010

   Edward Beiner, the Miami-based eyewear designer and retailer, could seek to merge with or eye acquisitions of other eyewear retailers in 2010 in order to expand, said co-owner Edward Beiner.

   The company could also entertain additional outside investment or business partners, as it eyes potential acquisitions, Beiner added.

   The company projects it will have approximately $8.5 million in revenues this year based on conservative estimates, he said, and currently operates nine stores in the state of Florida.

   Edward Beiner is one of the few independent optical retail chains in the United States, Beiner explained, as most are now owned by either hedge funds or large corporations.

   Eyewear manufacturers also consolidated, so that all major labels are now concentrated in the hands of two or three companies, evolving into this mass-luxury market, he said.

   In 2001, Beiner brought on board Guido Balocco as partner and board member, who now has a 50 percent stake in the company. Beiner said he had only two retail locations at the time.

   Balocco was previously the CEO of Persol during the 1980s, later engineered a leveraged buyout of that entity, and ultimately sold it to optical behemoth Luxottica in 1995.

   In the last four years, Balocco has been instrumental in Edward Beiner’s expansion, having an impact on accounting, forecasting, and financial controls.

   As a result, on the 15^th of every month, the company issues a thorough financial report, utilizing proper accounting methods, and operates strictly within its budget, Beiner emphasized.

   The addition of Balocco allowed Beiner to focus on merchandising and marketing, he added.

      Beiner revealed that the recession had a significant impact on the company. In September of 2008, Edward Beiner saw its sales decline by 30 percent. That year it had opened three stores, but had to halt any further plans as the financial crisis unfolded.

   The new store openings were financed with a combination of bank loans and cash-on-hand, and from cash flow, Beiner said. He said it was the right decision to help the company expand.

   Fortunately, the eyewear business began adjusting its inventories in 2007. In 2009, some of the company’s part-time employees left, but it received a great deal of cooperation from its full-time staff, who all remained, Beiner said.

   By April of 2009, Beiner said the company shifted its stance, while not entering panic mode and swiftly and drastically cutting prices, and decided to start bringing customers back in the door. One of its successful campaigns was to offer customers 20 percent off a second purchase of eyewear.

   For all of 2009, sales were down 11 percent at Edward Beiner, after a decline of 18 percent in the first six months of the same year. In the end, the company made its numbers, “hit it dead-on,” Beiner said. In the first two months of 2010, revenues are now up 25 percent.

   Ultimately, Beiner said that he and his partner were able to navigate a difficult period and still execute the retailer’s business plan.

   Beiner started his business in 1981. He said during the 1980s, eyewear was a necessity, not a luxury accessory. He saw an opportunity to deliver eyewear in a luxury environment, focused on customer service, and eventually offered to his customers his own private label line.

   Edward Beiner sells a line of eyewear under its own name to better represent “what Miami is all about,” including its aesthetic and culture, to recreate the local environment, Beiner said.

   The company pays a premium to obtain the highest quality materials to produce its sunglasses, but it is difficult to produce small quantities of anything, Beiner said.

   Every quarter it is necessary to come out with new designs, something that is unique that the customer will have an emotional connection too, while overseeing the manufacturing to ensure the highest quality.

   What can be frustrating for the business, though, is that while it sells its namesake line to tourists, and across the country via wholesale accounts, it is difficult to gain patronage from locals.

   Despite the challenges of coming out of the recession, producing small quantities of eyewear, and competing with giant eyewear manufacturers and retailers, Beiner sees this as the beginning of a new period providing a number of opportunities for growth.

   He said Edward Beiner defines itself as a service-based retailer that is a bit more exclusive.

   As the company slowed its expansion two years ago, it is now taking a fresh look, as well, at the Internet, which it sees primarily as a communication tool, but also as a way to add top line growth. Bricks-and-mortar will continue to exist, though, he said.

   The Edward Beiner brand of eyewear, however, has graced the faces of a number of celebrities over the years, including Alicia Keys, Heidi Klum, Lindsay Lohan, and Sigourney Weaver

   Although Beiner had opportunities to first establish business in places such as San Diego and San Francisco, he believed Miami, in transition at the time, was a place of the future. There were few high-end opticals, whereas now there are many.

   During the period Beiner has operated out of Florida, he has witnessed the conversion of Miami into the fashion destination that it is today, he said.

To Return To Page One, Click Here.