2023-08-25 17:45:08
In an unprecedented move in its centenary history, Rolex is buying Bucherer, the traditional Swiss luxury watch store, marking its entry into retail.
Carl Bucherer was one of the first Rolex dealers, in a business relationship that began in 1924. The Swiss chain, whose history dates back to 1888, now has more than 100 stores around the world. Transaction amounts were not disclosed.
Until now, Rolex had only one flagship store in Geneva.
Now, Switzerland’s largest luxury watchmaker, which earns US$ 10 billion producing 1 million pieces a year, will be able to rely on its own network to place its models on the market.
Rolex, however, said it will maintain independence in its commercial relationship with Bucherer, and that this will not affect the manufacturer’s relationship with its extensive network of representatives and resellers in any way.
“I know…” – was the market’s reaction.
The deal is being seen as a ticking time bomb for resellers of the most exclusive models of luxury watches.
The British Watches of Switzerland – which has half of its revenue coming from Rolex sales – lost 25% of its market value in a matter of minutes.
With its role under attack, the group issued a statement saying that the purchase of Bucherer should not be seen as “a strategic move by Rolex to enter retail” and that it was “a reaction to succession challenges at Bucherer.”
The market statement says that “Bucherer is a long-term partner of Rolex (alongside The Watches of Switzerland group)” and that “Jorg G Bucherer is 86 years old and is the grandson of the founder, Carl F Bucherer.” “The Bucherer family has no successors and it is their desire to set up a foundation with the proceeds of the transaction.”
The text also says that “there will be no operational involvement of Rolex in Bucherer”, and that the Swiss manufacturer “will not change its product allocation process or distribution development as a result of the acquisition.”
The announcement had little effect, and the stock ended the day down 20%, the lowest price in nearly three years.
“Rolex may be promising to treat everyone equally, but that might easily change in the future,” one brokerage told CNBC.
Jorg Bucherer would have taken the decision in fact because he has no direct heirs. He is part of the third generation of the family in the business and is the last one still alive to have kept in touch with Hans Wisldorf, one of the founders of the watchmaker that, in 1905, would become Rolex.
Bucherer, founded in Lucerne, also makes watches – and started before Rolex, in 1888. Classic models in the Carl F Bucherer line start at $3,500 – half the price of an entry-level Rolex.
Bucherer is also part of the group of representatives that started selling used Rolex with a guarantee certificate issued by the manufacturer.
The WoS group is the UK’s largest luxury watch retailer and has over 200 stores in Europe and the US. In addition to Watches of Switzerland, the group owns the Mappin & Webb, Goldsmiths, Mayors and Betteridge brands, in addition to operating exclusive stores for some brands – including Omega, TAG Heuer and Breitling.
MORE ROLEX
Used Rolex will now come with certificate
Giuliano Guandalini
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