GENEVA – Rolex is buying luxury retailer Bucherer in a deal that will give the biggest Swiss watch brand a major presence in consumer sales for the first time.
Bucherer has more than 100 stores worldwide and will continue to operate independently, keep its name and sell other watch brands, Rolex said in a statement. Financial terms were not disclosed.
Rolex said the decision to buy the Bucherer business was made after the family controlling the retailer decided to sell, and based on a decades-long relationship between the two private Swiss firms.
The acquisition paves the way for Rolex to start widespread sales of its watches in its own stores. There is now only one store in the world owned and operated by Rolex, in its home city of Geneva.
Rolex said relationships with its current retail partners, known as “official Rolex authorised dealers”, will be unchanged.
Still, the acquisition will give the storied brand more control over the sale of its watches, both new and pre-owned.
Mr Jon Cox, head of Swiss equities at Kepler Cheuvreux, said Rolex making a move into retail could have implications for listed sellers such as the British-based Watches of Switzerland Group and The Hour Glass in Singapore.
“At first glance, this is shocking for all of the other Rolex official dealers because Rolex has always said it is committed to independent retail distribution and has no desire to do own retail,” he said.
But the company’s statement that the deal was done in part based on the long-term ties with the Bucherer family could make the impact on other retailers “somewhat limited”, he added.
Despite making more than one million timepieces a year, and with more than nine billion Swiss francs (S$13.8 billion) in annual sales, demand for Rolex’s most popular models, such as the Submariner dive watch, Daytona and GMT, far outstrips supply.
Customers at authorised dealers are put on wait lists that can last for months and even years for the most in-demand models.
The Bucherer acquisition marks the second significant shift in retail strategy for Rolex in less than a year. The company unveiled a programme in December to issue certificates of authenticity for its used watches that are sold at authorised dealers, including Bucherer.
Rolex timepieces dominate the second-hand market, accounting for more watches bought and sold by value than any other brand. BLOOMBERG
