Reply With QuoteMe neither!
Genuinely surprised that a Watch wholesale company now wants to get into retail.
Maybe its to keep other large groups (WOS?) on their toes and/or to spread the distribution network for the Rolex owned brands.
https://www.hodinkee.com/articles/ro...ailer-bucherer
Didnt see anything like that happening!
Me neither!
Genuinely surprised that a Watch wholesale company now wants to get into retail.
Maybe its to keep other large groups (WOS?) on their toes and/or to spread the distribution network for the Rolex owned brands.
Yep Ive always thought it a shrewd move for Rolex to keep a distance (though having control behind the scenes undoubtedly) from the retail market.Originally Posted by Gareth-W
Still Im sure they know what they are doing :-)
Interesting move. I wonder if some boutique only models are in the distant future.
The blacklist beckons for some VIP clients! Couple of whales will be nervous reading that news.
I wonder if Rolex will now be sold solely by bucherer and Rolex boutiques and pull away from other ADs.
I would image that's the bigger longterm plan.
First thought I had was that Patek building they bought in Bond Street becoming a huge Bucherer Rolex boutique. Unless its been announced as something else.
Im all for the added competition for WOSG. The last few years have seen small ADs lose their status, WOSG have become dominant, and with that complacent. It isnt like Goldsmiths have been much help in supplying what I might want. Another competitor in the market, bring it on.
Dave
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Great! My purchase history is with WOS!
Best get buying from them now!
Great, a few more dark blue dials and an even-stronger monopoly. How exciting.
Rolex ADs must be wondering how long they have left .
Given the demand I cant see any logic in Rolex gifting a huge slice of the margin to ADs.
I make it 36 Bucherer stores in Europe and 34 Tourneau (bought in 2018) shops in the USA..so not sure why Hondinkee say over 100 stores
Seems to be plenty of history between Rolex and Bucherer going back many years and the fact they were first to get the CPO deal now makes sense too.
Bucherer are already on my Ze List after shtafting me on a watch deal - perfect acquisition by Rolex methinks. Happy to stick with Eddies iterations for now
I hope this isnt to the detriment of the good small family run type ADs. There are still some great ones left, and I hope it stays that way.
Sadly cant see it lasting for the independent ADs. The mothership is assuming full control.
Some interesting comments in this report;
https://robbreport.com/style/watch-c...234887221/amp/
(Still says 100+ shops 🤷🏼*♂️)
The Robb Report being a Luxury lifestyle magazine that is by no means any authority or substance then yes its an opinion at best.
Rolex defenders gather
RIAC
Good, finally Rolex is realising they're not in the watch business, they're in the real estate business.
(OK I may have watched The Founder last night)
Firstly I think its to better control the used market. Take for instance their most coveted product, the Daytona. The grey dealers have been making more profit on those, than the original retailer, and more likely the brand.
Rolex has already entered the used market with their pre-owned collection, now they want to better control the retail operation, possibly to stop their most popular watches going to grey dealers out the back door.
Look at every instagram post Rolex does and all the comments are nice watch but I cant buy one. Thats not because Rolex arent making them, they just dont reach the customer without going through a grey dealer first unless, youre prepared to wait an indefinite amount of time.
Secondly, Ive often thought that buying a Rolex should be more like buying a new car. You see your dealer, spec your watch: DJ 41, blue motif dial, fluted bezel, oyster bracelet. Pay a deposit and get a build date and delivery date.
Currently online customers are encouraged to build your watch. But the retail stores cant deliver it.
A couple of years ago I tried to spec a lady date just for my wifes 40th, and Mappin&Webb said they dont know what theyre going to receive in deliveries and couldnt tell me how long we would be waiting for the watch she wanted. So to guarantee getting a watch for her birthday I went to a grey dealer. That turned out to be a good experience in the end in spite of Rolexs authorised dealer network. And thats something Im sure will be improved with Bucherer being under Rolex full control.
Potentially the only way to kill the grey market. Remove the AD status from everybody and sell through their own network...............
When you look long into an abyss, the abyss looks long into you.........
Grey dealers are making the same margins as ever. The winners are those waxing AD's for watches like the Daytona to sell within a few years. Thats the largest gainers.
RIAC
Im pretty sure Ill be one of their VIP customers. I have the full spoon set.
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My brother in law had a lot of cash in his business
He's already a tax exile and lives well. So he's invested money in other companies in his sector. His own business didn't need investment
He's actually moved on in that he's selling a fair chunk of his business to private equity right now
I think Rolex have found a sensible place to put some of their mountain of cash
WoS stock already feeling the heat!
I took a punt - I think the reaction is overblown.
Wasn't taken particularly well in the markets by WOSG (their stock was down nearly 30% early doors):
Watches of Switzerland loses a quarter of its value after Rolex deal
By Steve Goldstein
(MarketWatch) -- Watches of Switzerland Group lost a quarter of its market value on Friday after Rolex agreed to buy a leading Swiss watch retailer.
Watches of Switzerland shares slumped 27%, after Rolex on Thursday said it's buying Bucherer, which has 100 outlets worldwide, not just in Switzerland but in the U.S., the U.K., Germany, France, Denmark and Austria.
Watches of Switzerland has 202 showrooms in the U.K., the U.S. and Europe. In a statement, Watches of Switzerland said the move is not a strategic move into retail by Rolex but a move reflecting Bucherer's succession challenges, as 86-year-old Jorg Bucherer, the grandson of the founder, does not have heirs.
Watches of Switzerland said its statement was reviewed and confirmed "by the highest level of Rolex management" at both Geneva headquarters and in the U.K. and the U.S.
Analysts weren't so sure. "The acquisition paves the way for Rolex to expand its direct-to-consumer sales efforts," said Eleonora Dani, an analyst at Shore Capital. Rolex presently just has a single owed store, in Geneva.
In its statement, Rolex said the Bucherer deal is the best solution not only for its own brands but for the broader industry. It said Bucherer will continue to be independently run.
-Steve Goldstein
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
Taken from Bloomberg.
More from the pages of Bloomberg:
The UKs biggest seller of*Rolex*watches lost nearly a third of its value on Friday after the Swiss brand bought*Bucherer AG, taking its first major step into retailing.
Watches of Switzerland Group Plc*shares fell as much as 30%, wiping out almost 500 million ($629 million) in market capitalization.
Rolex unveiled the surprise move to buy Bucherer late Thursday, prompting analysts to question what the deal means for Watches of Switzerlands future relationship with the brand. Peel Hunts*Jonathan Pritchard*noted that Rolex accounts for half of the companys sales, and cut his rating on the stock to hold from buy.
Rolex executives assured the UKs biggest retailer of the brand that it will continue to be allocated watches by the same distribution system, Watches of Switzerland Chief Executive Officer*Brian Duffy*said in an interview.
Nothing has changed as far as Rolex is concerned, he said.
The purchase was an elegant solution to succession challenges at family-owned Bucherer, Duffy*said. The retailer was founded by*Carl F Bucherer*in 1888*and wanted to remain Swiss-owned.*
Rolex will not have operational involvement in the Bucherer business, Watches of Switzerland said in a statement.
Analysts were still skeptical. Inevitably the market is debating today the extent to which the news signals a growing risk of a weakening future relevance of Watches of Switzerland to a key supplier for the group, Jefferies*James Grzinic*wrote in a note.
Peel Hunts Pritchard said the concerns are likely to act as a cloud over the shares for the foreseeable future.
The stock had already come under pressure this year amid worries over softening sales and slowing demand for high-end timepieces.
Entirely predictable
At best it creates uncertainty for WOSG, and Im not sure that is great for any business going forward
D
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Me too. Fell to just under 5, but is back a bit to 5.50 currently. Let's see....
I wonder what this means for the very good but off the radar Carl F Bucherer brand. Could it be that Rolex plan to use their skills in a different segment to launch a higher end line?
Overblown reaction. Bucherer currently has around 40 shops across the whole world, a drop in the ocean vs WOS.
What it does give Rolex now is data. Data into the watch purchasing habits of collectors across the world. That's very useful. But mostly this is about controlling the AD distribution of their watches and protecting their brand.
BTW in the US Bucherer owns the Tourneau brand, those will now come under the Rolex umbrella.
Last edited by ryanb741; 25th August 2023 at 11:27.
About double that when you add the US
Sure but for example in the UK I believe Bucherer are only in London right? From a physical store perspective anyway. So literally the tip of the iceberg when it comes to Rolex AD distribution channels
That is from the press release that Rolex put out.
three actual stores plus Selfridges in london. Not going to change where I shop.
Better than Richemont and LVMH.
I think it makes sense for Rolex to take Bucherer over given the relationship between the companies, bit like when they bought gay freres.
Be interesting to see what they do with it.
I wouldn't underestimate how much this is about keeping it in Swiss hands until a long-term plan is worked out.
although Boucher are thin on the ground in the UK its the distribution of their stock, prioritising their own network of stores across the UK, Europe and the world that will cause W.O.S a big headache.
Cheers,
Ben
..... for I have become the Jedi of flippers
" an extravagance is anything you buy that is of no earthly use to your wife "
Ase mentioned above, big 20% hit on WOS stock price today. No matter which way you look at it, this is not good news for WOS. They were almost at monopoloy levels in terms of Rolex sales in the UK. Given bundling deals, this must also have a huge impact on the sales of non-Rolex, without a doubt.
Globally, Bucherer has a powerful presence.
Rolex are saying the relationships with other retailers will not change, that remains to be seen.
Sure, just found that press release here;
https://www.google.com/url?sa=t&rct=...G&opi=89978449
Must be some anolomy as on the 2 respective retail websites it's the 70 stores (in total) that I referenced earlier.
Bucherer
* Switzerland = 16
* Germany = 13
* UK = 4
* France = 1
* Austria = 1
* Denmark = 1
= 36 in total
Tourneau
* California = 10
* Florida = 4
* Hawaii = 3
* Illinois = 1
* Massachussetts = 1
* Nevada = 2
* New York = 9
* Pennsylvania = 3
* Virginia = 1
= 34 in total
I'd be interested to know where I'm going wrong here LOL!!!!
And when the various press releases quote Bucherer/Tourneau as "the or one of the largest watch retail groups in the world" I do wonder what metric are are they using compared to, say, WoS Group for example?
Last edited by Gareth-W; 25th August 2023 at 13:18.
To me, it makes sense. It's all part of the Rolex plan. They know that they can sell most of their watches from a handful of stores having 100 outlets doesn't make any sense those hundred outlets only eat into their margins when they don't own them.
Logistically easier to manage less invoicing, less contacts
RIAC
I agree
I think there will be a massive shrinkage in the Rolex points of sale in the next ten years.
I think we will end up with fewer than fifty Rolex points of sale in the UK and I think the mothership will own a good chunk of them
That was the mission when Roger was replaced. Just taking a while.
RIAC
Ouch..
I would steer clear of investing in any entity that is dependent on 1 supplier for the items that make up 50% of revenue. That cant be a healthy business model.
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Truth is that not one person outside of Geneva or St. James Square really knows and it's all just conjecture either way. I agree that there could well be a reduction in the number of points of sale for the Rolex brand but there are around 95 in the UK now (of which Bucherer are only 4 sites and just in London only) it would mean Rolex having to buy a lot of retail landscape to own the 50 stores in the UK that you suggested which I personally do not see happening at all.
And since the news of this broke yesterday there are lots of credible reports suggesting that this more of a legacy (as it appears that the Bucherer family has no direct heirs to take on the business) and partnership acquisition as opposed to some kind of 1984/Orwellian type of move by Rolex SA. But let's wait and see how it plays out.....
Duplicate
Almost all retailers have gone online, Rolex have yet to do so. I doubt that plan is forever. Adding a high street arm to their business could allow online sales with in store collection. We already do that with used and nearly new models from other retailers.
I didn't say Rolex would own 50 points of sale. I said they'd own a large chunk of the 50 or fewer that remain from the next round of culling.
I think the ADs with proper pedigree and presence will retain the brand. Think Mallory's, Pragnell, Hamilton and Inches and others. Goldsmiths on Chelmsford high Street does not fit the brand. You don't see a Hermes point of sale in Chelmsford do you? So why can you buy a Rolex in such a place. I think all those ADs will be chopped and rightly so.
Also agree with the poster above. Rolex online sales are coming soon. Again, if Hermes can sell online, why can't/won't Rolex
You won't buy a Daytona online (you cannot buy a birkin) but you'll buy various other models within 5y I think
Apologies for misquoting you on the 50 stores.
I hope that the best independent ADs (of which there are many) continue their association with the Rolex brand along with the likes of WoS Group in the better locations too.
It would be quite a sea change for Rolex to have an online retail platform but at some point its got to be inevitable in the modern world really.
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