Real Estate Retail

Luxottica to showcase real estate implementation in US

Australia’s first SAP Flexible Real Estate implementation, which enables Luxottica Retail to cost-effectively manage multiple rental sites and fit-outs, is to be showcased at the 2011 SAP Exchange on Real Estate Lifecycle Management.
Luxottica Retail’s ‘Project Promis’, which was implemented by Harms Consulting, will be outlined in Chicago on 5-6 April.

Tony Hess, director of real estate, Luxottica Retail, and Adrian Vaughan, senior SAP Real Estate solution architect, Harms Consulting, will present at the conference on ‘Managing a Regional Network with SAP Real Estate Management, sharing an overview of the project and the history of the challenges faced by Luxottica Retail.

The project was initiated when, after a period of rapid growth, Luxottica Retail found it difficult to get a clear view of the real estate aspects of its business.

The visibility deficiency was exposing the business to increased commercial risk around the management of lease renewals and the administration of the increasing total budget for store fit-outs and refurbishment.

“Luxottica really needed to take control of its growing portfolio in terms of financial visibility and risk mitigation. On the other hand, Harms Consulting needed to equal the functionality of the best-of-breed applications available to the market, which made SAP Real Estate Management the obvious choice for Luxottica Retail,” Vaughan said.

Luxottica Retail operates 1000 stores in Australia, New Zealand, Singapore, Hong Kong and Malaysia, operating five brands – OPSM, Laubman and Pank, Sunglass Hut, Budget Eyeware and Bright Eyes Sunglass stories,
All stores are leased and rental payments exceed $8.9 million per month, with 6500 staff employed in the retail network.

Hess said the implementation has minimised the company’s risks.

“We are now able to fully understand the Luxottica portfolio. The improvement alone means the implementation has probably paid for itself in its first year.”
Read the source article at Inside SAP

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