Because you end up paying around 50 times as much as what the glasses actually cost.
But because of how they do it they hide that. $40/month for 2 years = $960 "for insurance" which gives you the right to buy glasses worth around $20 or so.
All the number are inflated leaving people with the impression that glasses cost $400 - they don't.
The average person doesn't consider them to be a viable option. Don't ask me why, but it's true. And them being considered a viable option is a prerequisite to competition working right.
The average person (at least in the US) does not consider the world’s largest retailer, with a well known reputation for being the cheapest, an option? I don’t buy that.
That WalMart link is to decorative glasses, not prescription glasses.
So here's the thing with WalMart and Luxottica - their insurance does not fully cover WalMart! They give you a significantly reduced amount with WalMart (or Costco), that's how you know it's fraudulent - they only want to cover their own stores, that's not a normal behavior for "insurance".
But because of how they do it they hide that. $40/month for 2 years = $960 "for insurance" which gives you the right to buy glasses worth around $20 or so.
All the number are inflated leaving people with the impression that glasses cost $400 - they don't.