Pic courtesy of Bucherer
Rolex is the biggest and most powerful brand on the planet, headquartered in Geneva and rarely making headlines with acquisitions by this brand. Bucherer is widely considered the world’s leading luxury watch retailer.
Rolex’s recent move to acquire Bucherer sent shockwaves through the luxury watch industry last week. Jorg Bucherer (86-year old grandson of founder Carl Bucherer) hinted that there would be no direct heirs of Carl Bucherer’s company and Rolex has made every attempt with this acquisition to uphold its partnership that dates back to 1924.
Bucherer and Rolex have had an extensive relationship for over one century, but with this merger Rolex is venturing into consumer sales – something it has never done before!
What will become of Bucherer/Tourneau now?
If you weren’t aware, in 2018, Bucherer acquired US luxury watch retailer, Tourneau. Bucherer/Tourneau fans shouldn’t worry, Rolex has assured that Bucherer will remain under its brand name without any managerial changes – the competition watchdogs have given their stamp of approval!
Watches of Switzerland weighs in
Power house luxury watch retailer, Watches Of Switzerland was negatively impacted by Rolex’s announcement, with their stock dropping significantly despite claims that Rolex wasn’t making a strategic move into retail and Jorg Bucherer wishing for a legacy fund.
Though Rolex & Bucherer prefer to keep its financial details confidential, Watches of Switzerland boasts an estimated market capitalization of PS1.68 billion (2.12 billion dollars) and has proved resilient despite U.K. economic fluctuations.
The bottom line
This definitely makes you think, is Rolex inserting themselves into the retail game for more control and dominance with this power move? How will it affect other retailers and will they give their Bucherer/Tourneau stores preferential treatment?, I’m sure their input will be felt regardless. They are a very smart and strategic monster of a brand that is always five steps ahead of the rest… Only time will tell!
Due to the unpredictable and volatile market on certain Rolex, Patek Philippe and Audemars Piguet watches, prices are subject to change.