What now for Watch shops?

[Alansmithee]

So on weds we go into lockdown until the 2nd of December however there is a fairly good chance that that will be extended for another two weeks after that. I notice that Ernest Jones is extending open hours to try and bring punters in before lockdown.


In theory we are about to enter the peak buying period and a watch is an item that many feel you have to try out and have some cheap fizz while a young girl goes "that looks really good on your wrist" while you sign the credit agreement.

So do you expect to see:

1) No real change and chains making the best of it online
2) Sales coming forward or having bigger discounts
3) Brands who do not permit online sales allowing ADs to do more selling online?
4) A mixture of above?

[snowman]

It's going to be hard for most retailers, Amazon will clean up.

My son works in an independent toy shop, the next few weeks are the key ones for them in the whole year - I'm sorry, but Johnson and his cronies don't give a flying fox about small businesses. I'll be amazed if my son has a job come January.

This will make the huge online retailers totally dominant and drive virtually all the independents to the wall.

But luxury watches sellers? I think they'll survive on the whole - There's always some event, graduation, wedding, birth, promotion, birthday, anniversary which demands jewelry and people like to shop for such things in person and buy new, on the whole.

Once again, TZ_UKers are fairly unrepresentative of most buyers of watches and jewelry.

M

[Alansmithee]

Once again, TZ_UKers are fairly unrepresentative of most buyers of watches and jewelry.

M

Good points - the last time I checked a few years ago - the average selling price of a watch in the UK was £83!


I do wonder if more people will end up getting the new apple watches and that displaces further some of the sales of lower-end brands.

[boring_sandwich]

I also think it will be crippling for most retailers especially the independants that do not have a big online presence. Personally think the date will extend on closer to Christmas and possibly even into the New Year.

[higham5]

Good points - the last time I checked a few years ago - the average selling price of a watch in the UK was £83!


I do wonder if more people will end up getting the new apple watches and that displaces further some of the sales of lower-end brands.

I think Apple and fitbit devices have opened up a niche and then expanded. I meet so many people these days with an electronic wrist product. in terms of mechanical or conventional watches I recon its 2 or 3 to 1. Chances are 12 months from now that £83 will have risen due to more £100-200 devices being purchased.

Steve

[gerrudd]

The pandemic has accelerated a trend that was already there. If going to a shop adds no additional value to the shopping experience, then people are more likely to buy online. The pandemic has made people more comfortable and more reliant on online retailers. Watches of Switzerland and similar will survive. They sell high margin goods with an experience wrapped around it. Amazon doesn't compete in that space. The average high street jeweller will suffer and I expect many won't survive.

[Alansmithee]

I think Apple and fitbit devices have opened up a niche and then expanded. I meet so many people these days with an electronic wrist product. in terms of mechanical or conventional watches I recon its 2 or 3 to 1. Chances are 12 months from now that £83 will have risen due to more £100-200 devices being purchased.

Steve

Not sure how Niche the apple watch is given that it's sales value is bigger than the whole swiss watch industry!

[Idontgram]

I think it fundamentally comes down to online presence and the size of their war chest.

Those with a large reserve will be able to shoulder the costs for the length of lockdown, with the expectation of a catch up post lockdown, like we saw after the first one. Equally, that cost might be mitigated by online sales, though as said above, most people would likely be reluctant to spend big money on goods online.

Small independents always suffer hardest with any change in environment. I guess that’s part of the risk/reward of owning a small business. I’m not saying it’s right but surely one must know that the benefits of not working for a large company are somewhat mitigated by being more vulnerable generally.

[robert75]

So on weds we go into lockdown until the 2nd of December however there is a fairly good chance that that will be extended for another two weeks after that. I notice that Ernest Jones is extending open hours to try and bring punters in before lockdown.


In theory we are about to enter the peak buying period and a watch is an item that many feel you have to try out and have some cheap fizz while a young girl goes "that looks really good on your wrist" while you sign the credit agreement.

So do you expect to see:

1) No real change and chains making the best of it online
2) Sales coming forward or having bigger discounts
3) Brands who do not permit online sales allowing ADs to do more selling online?
4) A mixture of above?

Who actually thinks like that? My guess would be most people would like to just buy a watch they like and leave, much the same as any other item. This whole drinking champagne served by some female shop assistant seems to live more in the over active mind of the mid life crisis male. Last watch I bought in an AD I had a cup of coffee and checked my phone while waiting last thing on my mind was a glass of cheap plonk.

Big retailers have been selling online for years dont see where one month is going to make a massive difference to them

[ajw232]

You can collect in store so they’ll still be operating but not in the traditional sense. If a watch comes in you’ve enquired about then they’ll call you, you pay then come in and collect it. Likewise if someone phones up or enquires online and the watch is available they can pay, go to the store and collect it.
Where they’ll suffer is passing trade although I imagine the majority of watch purchases are considered purchases.

[Mick P]

Most watch shops are going to be shut down for at least 28 days, if not longer. They are going to be a bit tight for cash so I would imagine if anyone walks in on the 4th November and says they will buy a decent watch or any other item of jewellery in exchange for a discount, they have a fair chance of doing a deal. It might be feasible even to do it on a Rolex.

[Alansmithee]

Most watch shops are going to be shut down for at least 28 days, if not longer. They are going to be a bit tight for cash so I would imagine if anyone walks in on the 4th November and says they will buy a decent watch or any other item of jewellery in exchange for a discount, they have a fair chance of doing a deal. It might be feasible even to do it on a Rolex.

Hum... Might try this on Thursday and report back.

[blackal]

I don't see cash-strapped councils reducing business rates to suit - so with the attendant heating and staffing costs - I can see the jewelry and watch outlets having a tough time (to say the least).

A lot of their sales at this time of year are 'tactile' sales - and impossible to replicate with online sales unless people have already looked/touched the items ahead of a lockdown.

Time will tell (do you see what I did there)

[Pitfitter]

I avoid Amazon and other online like them, if I was thinking about a big budget watch purchase I’ll wait until the shops return to normal or deal by phone, of course the shops up here aren't shut(yet) just restricted travel, but honestly, luxuries are way down the list in the Covid era.

[McBeardy]

I’d for one like to spend money with my local AD however, they’ve been nothing but rude and disinterested in any form of good service.

Your in sales don’t patronise me, you ideally need my money! Previously gone to my local ‘mall’ and spent the money

However I reckon deals will be available near Christmas as we all know this month will become 6wks.


Sent from my iPhone using TZ-UK mobile app

[Mick P]

Hum... Might try this on Thursday and report back.

Noooooooooooooooooooooooooooooooooooooooooooooooo

Do it Wednesday, they will be shut Thursday.

[Alansmithee]

Noooooooooooooooooooooooooooooooooooooooooooooooo Do it Wednesday, they will be shut Thursday.

oh yeah 😂

[MartynJC (UK)]

Seems like most manufacturers are going the direct sales route now - Omega, Breitling, JLC.

I think this is an inevitable move - allowing the manufactures to dictate the sale prices and remove discounts at sale.

Sadly - watch “shops” may go the way of many retail stores and all move online.

the current situation has just accelerated the process.

IMHO

[Devonian]

The main Rolex AD in the south west with 4 stores have changed their website recently and are now doing online sales. I’m guessing they have to now as that’s only going to increase. This virus has probably accelerated it beyond why they would have anticipated. Must be extremely hard as I’d imagine November and December account for a ridiculously high percentage of the entire annual turnover of most jewellers.

Rolex can’t be sold online so wonder how that will play out?

[RobDad]

Who actually thinks like that? My guess would be most people would like to just buy a watch they like and leave, much the same as any other item. This whole drinking champagne served by some female shop assistant seems to live more in the over active mind of the mid life crisis male. Last watch I bought in an AD I had a cup of coffee and checked my phone while waiting last thing on my mind was a glass of cheap plonk.

Big retailers have been selling online for years dont see where one month is going to make a massive difference to them

I can’t think of anything more likely to discourage me from buying a watch - in fact from buying anything - if the experience involves ‘an attractive young woman pouring me a glass of champagne’ or similar to ‘sweeten the deal’. Just unspeakably naff!
For some reason it reminds me of my first visit with a client to a Strip Bar back in the late 80’s when I was about 19 years old - it was the done thing in the city back then. One of the girls tried to embarrass me - I looked my age I guess - and I politely pointed out I wasn’t remotely upset, my current girlfriend was probably younger than her, just as pretty and didn’t operate a ‘look don’t touch’ policy. She was actually highly amused and over the next couple of years (I took a lot of clients there!) we became quite good friends - me in my suit, pint in hand, her virtually naked, chatting about the weather, work, just everyday stuff - like it was the most normal thing in the world! Sorry, rambling, but the memory made me chuckle!

[paskinner]

While in lockdown, dealers can be more inclined to co-operate over a scarce watch. Offer a 50% deposit (credit card for safety) and the lure of cash flow could do wonders. Especially if this drags on.
Further,I suspect the Mini-boom of the last six months is well and truly over. A friend who deals in high end luxury goods says he’s watched the cash drying up over the last two weeks.

[Haywood_Milton]

It's been a fantastic six months or so for many watch dealers and jewellers.

A deluge of grants and loans supporting businesses that didn't need them has allowed many buyers to spoil themselves.

At the same time, many people with steady, reliable incomes have not been able to go on foreign holidays and their fun-money has been diverted to "the Rolex watch / diamond earrings you've always wanted."

The grants and loans will stop, and for many others the end of this year and start of next will be disastrous, but the second group above will remain, their income will continue but foreign travel will be no easier. I believe that sales of strong brands and good stock will continue to be solid for at least the next year or more. People with money want to spend it on things that make them feel good....encouraged all the more when money earns nothing in the bank.

I wouldn't expect any of the desirable models to become any easier to obtain soon.

[Hood]

It's been a fantastic six months or so for many watch dealers and jewellers.

A deluge of grants and loans supporting businesses that didn't need them has allowed many buyers to spoil themselves.

At the same time, many people with steady, reliably incomes have not been able to go on foreign holidays and their fun-money has been diverted to "the Rolex watch / diamond earrings you've always wanted."

The grants and loans will stop, and for many others the end of this year and start of next will be disastrous, but the second group above will remain, their income will continue but foreign travel will be no easier. I believe that sales of strong brands and good stock will continue to be solid for at least the next year or more. People with money want to spend it on things that make them feel good....encouraged all the more when money earns nothing in the bank.

I wouldn't expect any of the desirable models to become any easier to obtain soon.

Exactly this.
A lot of spare money sloshing about at the moment and any tradesman I ask doesn't have enough hours in the day due to money being spent on home improvements.
This time next year may be a different story however most peoples biggest expense is the mortgage and with rates at this level the eventual financial pain might be manageable for most.

[Zook]

I think that it may as other suggest come down to how sophisticated their online presence is. I also think that shops moving to online but who are not used to distance selling rules may also get caught out with potentially significant volumes of returns.


Sent from my iPhone using Tapatalk

[tim2012]

Despite all that is happening, there are people with money to spend. The question is whether watches will remain desirable and whether trade will stay with local AD or not. I suspect big brands will continue to do well but local AD will struggle.

[PipPip]

My wife runs a little business making very expensive hand made bespoke curtains, blinds and soft furnishings. A couple
of pairs of curtains from my wife is Rolex money (but Patek quality ). This has been her best year ever by a long way with an order book now stretching to April next year. Her sales mostly come via a few interior designers who are also being run ragged. Talking to one she said her clients are a mix of retired folk and well off people who are now working from home and consequently much more aware of their surroundings. They are typically spending the money they would have otherwise spent on foreign holidays, attending sporting events etc. I guess the same applies to other luxury purchases like watches and I can’t see this ending soon for these kind of folks. Seems to be plenty of money sloshing around regardless.

[aldfort]

It's been a fantastic six months or so for many watch dealers and jewellers.

A deluge of grants and loans supporting businesses that didn't need them has allowed many buyers to spoil themselves.

At the same time, many people with steady, reliable incomes have not been able to go on foreign holidays and their fun-money has been diverted to "the Rolex watch / diamond earrings you've always wanted."

The grants and loans will stop, and for many others the end of this year and start of next will be disastrous, but the second group above will remain, their income will continue but foreign travel will be no easier. I believe that sales of strong brands and good stock will continue to be solid for at least the next year or more. People with money want to spend it on things that make them feel good....encouraged all the more when money earns nothing in the bank.

I wouldn't expect any of the desirable models to become any easier to obtain soon.

This ^

Those who think there are bound to be discounts. Yes on the brands that you can traditionally get discount on. no onthe brands you can't.

[paskinner]

Of course there are discounts, easy ones. One serious local jeweller, with many brands, is offering 20% off every single item , everything in the shop. They’re not a Rolex dealer. And they’re not alone. Jewellers did have an easy time, but nothing lasts . The suggestion that a massively hit economy is largely immune is remarkably optimistic. Sadly.

[stevecross]

My wife runs a little business making very expensive hand made bespoke curtains, blinds and soft furnishings. A couple
of pairs of curtains from my wife is Rolex money (but Patek quality ). This has been her best year ever by a long way with an order book now stretching to April next year. Her sales mostly come via a few interior designers who are also being run ragged. Talking to one she said her clients are a mix of retired folk and well off people who are now working from home and consequently much more aware of their surroundings. They are typically spending the money they would have otherwise spent on foreign holidays, attending sporting events etc. I guess the same applies to other luxury purchases like watches and I can’t see this ending soon for these kind of folks. Seems to be plenty of money sloshing around regardless.

A pair of curtains for Rolex money, wow, having said that if people are happy to pay several thousands for a set of living room curtains that is fair enough, I am however shocked that in todays world a couple of pieces of fabric can sell for £10,000. Good on your wife for tapping in to a market like she has.

[aldfort]

Of course there are discounts, easy ones. One serious local jeweller, with many brands, is offering 20% off every single item , everything in the shop. They’re not a Rolex dealer. And they’re not alone. Jewellers did have an easy time, but nothing lasts . The suggestion that a massively hit economy is largely immune is remarkably optimistic. Sadly.

Sort of what I said. Shoping on the last day before the Welsh lockdown there was money off on nearly everything. The operative word being "nearly". No money off Rolex and no Rolex I'd want to buy. (...and where do WoS find those pre-owned pieces? Far too blingy for my taste.)