Rolex expands retail presence with Bucherer acquisition

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After a sequence of strategic manoeuvres, together with the launch of its licensed pre-owned service and the enlargement of watch manufacturing amenities, Rolex is about to broaden its retail attain via the acquisition of Bucherer, proprietor of the Tourneau chain within the US.

Bucherer, a retail companion of Rolex for over 90 years, boasts a worldwide community of 100 gross sales shops, with 53 of these institutions authorised as Rolex sellers.

Additionally, Rolex notes that 48 of those places additionally carry Tudor watches, a model owned by Rolex. According to data accessible on the Tourneau | Bucherer web site, the retailer operates 34 websites within the US.

Both Rolex and Bucherer are privately held entities, safeguarding their monetary knowledge and metrics from public view. While specifics stay undisclosed, estimates point out that in 2021, Rolex manufactured 1.05 million watches and achieved a powerful $8.8 billion in income. Despite the acquisition, each Bucherer and Tourneau will retain their distinct identities and proceed to operate as unbiased enterprises, as said by Rolex. The merger is poised to take impact following regulatory approval, which is pending.

As Rolex makes its foray into the retail sphere, it does so within the face of sure trade challenges. Luxury retailer Watches of Switzerland Group reported a downturn in first-half gross sales attributable to a “challenging trading environment,” though it underscored sturdy demand. Swiss watch exports, an trade benchmark, skilled their first month-to-month decline in two years in July, primarily pushed by weaknesses within the Chinese market.

The broader luxurious sector can also be confronting obstacles with LVMH reporting second-quarter gross sales that fell in need of estimates, with gross sales development stalling and even declining within the US. Rolex’s newest transfer is interpreted as a strategic response to determine direct relationships with finish prospects, bypassing intermediaries and enhancing income by consolidating retail margins.