In pictures: How will the Rolex-Bucherer deal disrupt luxury watch retailing?

Photos

Login / Sign Up

Saturday, November 23, 2024

Gold / Forex

Photos Business

In pictures: How will the Rolex-Bucherer deal disrupt luxury watch retailing?

The move raised investors' concerns about a possible squeeze on supply to other stores

Published: August 26, 2023 14:35 Bloomberg

1 of 11

Copy of 401435717-1693043720738 — Rolex is upending the world of luxury watch retailing by buying Bucherer in a deal that gives the Swiss brand a major presence in consumer sales for the first time. Image Credit: Bloomberg

2 of 11

Copy of 401441547-1693043684833 — A move that could have long-term consequences for rival retailers, the world's largest luxury watchmaker will now control Bucherer's more than 100 stores globally. Image Credit: Bloomberg

3 of 11

Although the boutiques will continue to operate independently, keep the Bucherer name and sell other watch brands, the move raised investors' concerns about a possible squeeze on supply to other stores. Shares of Watches of Switzerland Group, the biggest Rolex dealer in the UK, lost more than a quarter of their value on the news on Friday. Image Credit: Bloomberg

4 of 11

Copy of 401439175-1693043700801 — The purchase is a logical step for two businesses that have had a very close relationship since 1924, according to Jean-Philippe Bertschy, an analyst at Vontobel who estimated Bucherer has an enterprise value of about 4 billion Swiss francs ($4.5 billion). The companies didn't disclose financial terms. Image Credit: Bloomberg

5 of 11

Copy of 401439128-1693043703436 — Rolex said the decision to buy Bucherer was made after the family controlling the retailer decided to sell, and it said relationships with existing retail partners won't change. Image Credit: Bloomberg

6 of 11

Copy of 401441448-1693043698292 — Still, it marks a strategic shift for the biggest Swiss watch brand, which has long said it wouldn't sell its watches directly to consumers. Image Credit: Bloomberg

7 of 11

Copy of 401439006-1693043706720 — There's currently only one store in the world owned and operated by Rolex, in its home city of Geneva. The Bucherer deal will give the brand a direct line to its customers and more control and oversight for distribution, allocations as well as pricing for pre-owned timepieces. Image Credit: Bloomberg

8 of 11

Copy of 401438367-1693043709281 — Rolex entered the used market last year with a surprise move to certify its pre-owned timepieces through retailers like Bucherer. Image Credit: Bloomberg

9 of 11

Copy of 401438318-1693043711978 — Watches of Switzerland was given a heads up by Rolex on the announcement beforehand as well as assurances that the system that Rolex uses for allocations of product wouldn't be altered, CEO Brian Duffy said. Image Credit: Bloomberg

10 of 11

Rolex-Submariner_Ref-124060_chromalight — Demand for Rolex's most popular models, such as the Daytona, GMT and Submariner dive watch, far outstrips supply even though the company makes more than 1 million timepieces per year and generates more than 9 billion francs in sales. Image Credit: Supplied

11 of 11

Copy of 401441496-1693043691770 — The Bucherer acquisition marks the second significant shift in retail strategy for Rolex in less than a year. The company unveiled a program in December to issue certificates of authenticity for its used watches that are sold at authorized dealers, including Bucherer. Image Credit: Bloomberg

This website stores cookies on your computer. These cookies are used to improve your experience and provide more personalized service to you. Both on your website and other media. To find out more about the cookies and data we use, please check out our Privacy Policy.

In pictures: How will the Rolex-Bucherer deal disrupt luxury watch retailing?

Photos

Photos Business

In pictures: How will the Rolex-Bucherer deal disrupt luxury watch retailing?

Latest In

Eid Al Etihad: Dubai announces private school holidays

Trending: Saudi's IPL entry; Girl strangled to death

32 killed in new sectarian violence in Pakistan

UAE, Indonesian Presidents witness exchange of MoUs

'Philippine VP made 'active threat' on Marcos' life'