In a move that would give the largest Swiss watch brand a significant foothold in consumer sales for the first time, Rolex SA is purchasing the upscale retailer Bucherer AG.
Rolex stated in a statement that Bucherer, which operates independently, will preserve its identity and offer other watch brands, and that it has more than 100 stores globally. Financial details weren't made public.
According to Rolex, the decision to purchase the Bucherer company was made following the family's choice to sell the retailer and was supported by a long-standing partnership between the two private Swiss businesses. The purchase opens the door for Rolex to start offering its timepieces widely in its own stores. In its hometown of Geneva, Rolex currently only owns and operates one store worldwide. The connections between Rolex and its present retail partners, sometimes referred to as "official Rolex authorised dealers," will remain the same, the company claimed.
Even yet, the acquisition will offer the illustrious company more influence over the sale of both new and used watches. Rolex's entry into the retail sector, according to Jon Cox, head of Swiss equities at Kepler Cheuvreux, might have an impact on listed vendors like Watches of Switzerland Group in the UK and The Hour Glass in Singapore.
Since Rolex has consistently stated that it is devoted to independent retail distribution and has no intention to undertake its own retail, Cox noted that this is initially shocking for all of the other licensed Rolex dealers. The effect on other merchants may be "somewhat limited," he continued, due to the company's admission that the agreement was made in part because of the long-standing relationship with the Bucherer family.
The acquisition of Bucherer represents Rolex's second substantial change in retail strategy in less than a year. In order to authenticate used watches purchased from authorized retailers like Bucherer, the business introduced a program in December.
Oliver Mueller, CEO of Swiss company LuxeConsult, described capturing the retail market and providing Rolex and its more affordable sister brand Tudor a stronger presence in stores as a "game changer."
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