After his acquisition of “Bucherer”
Dubai – Al Arabiya.net
Posted on: August 27, 2023: 03:11 PM GST Last updated: August 27, 2023: 04:02 PM GST
Shares of the “Watches of Switzerland” group, which is the largest dealer of luxury “Rolex” watches in Britain, fell by more than 30%, and the company lost $ 630 million of its market value in trading on Friday, after “Rolex” announced the acquisition of a company selling watches.
With that move, Rolex changed the landscape of the luxury watch retail business by purchasing Bucherer, which operates 100 watch and jewelry stores in Europe. The company is known for its exclusive selection of luxury watches and jewelry from famous brands.
The deal will give Rolex a significant presence in direct retail sales, but will squeeze supplies to competing retailers that have franchised Rolex watches.
The announcement of the deal came despite previous statements by Rolex that it would not enter the direct-to-consumer retail market. It stated that the acquisition came in the wake of the decision of the 86-year-old owner of the company, George Boecker, to sell the company in the absence of any direct descendants to take over. Provided that it remains the largest watch retailer in Switzerland and at the hands of the Swiss.
The retailers will continue to operate independently, keeping the “Bucherer” name and selling other watch brands.
Prices for the most popular pre-owned models from Rolex, Patek and Audemars Piguet began to fall sharply in the first quarter of 2022 due to rising interest rates, slowing economies and the collapse of cryptocurrencies, after an unprecedented rebound during the pandemic. According to the “WatchCharts” website, which tracks the performance of 60 watches from the 10 largest brands, the prices of Rolex watches fell 4.2% in 6 months, while the prices of “Patek Philippe” decreased by 6% and “Audemars Piguet” by 8.5%.
2023-08-27 11:11:00
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