
Yesterday it was announced that Rolex is seeking to acquire the iconic watch retailer Bucherer, one of the largest and most prestigious independent watch retailers in the world with over 100 points of sale internationally. While the deal is yet to be approved by competition authorities, it’s already having a major impact on the watch retail landscape with rival retailer Watches of Switzerland seeing their market price drop suddenly.
Let’s focus on the Rolex x Bucherer announcement first. In a statement, Rolex has cited that as Jörg Bucherer has no descendants he is looking to sell his company’s business and as Rolex already has a close working relationship to the retailer (half of all Bucherer stores stock Rolex and Bucherer was one of the first to adopt Rolex’s Pre-Owned Certification scheme) it made sense for Rolex to jump at the opportunity. Pending that competition approval, Bucherer will become part of the Rolex group operating as an independent entity under its existing management.
The somewhat cynical interpretation of this news is that this was always coming as soon as Rolex decided to step into the retail game to a larger extent with the introduction of that pre-owned scheme. They’ve always liked to control their branding and sales to a greater extent than most watchmakers and now they’ve consolidated that and have influence over all stages of their watches’ retail existence.
What this means for the rest of the watch industry is likely that Rolex will be battening down the hatches a little and limiting some of the current places that you can purchase them from. That’s pure speculation but it’s enough to make some people concerned with one of the most recognisable names in the industry becoming more exclusive – the result of which is already causing waves on the stock market for Bucherer’s rivals.
Watches of Switzerland Rolex Boutique Battersea Power Station
Most apparent is the effect on Watches of Switzerland which dropped on the London Stock Exchange from 693.5 to 499 in under 24 hours. Although it has since recovered to 540 and, as is the nature of stocks, is fluctuating all the time. What the lasting impact will be remains to be seen and until the Rolex x Bucherer deal is finalised we won’t know what the impact on customers and collectors will be either (other than the speculation that maybe we’ll get a Bucherer Blue Rolex). We’ll update this article with any relevant addendums.
More details at Bucherer.
Oracle Time