On August 24th, 2023, we all heard the news about Rolex acquiring Bucherer, one of the oldest watch retailers. I am finally publishing this editorial, as I wanted the news to settle down and also give myself plenty of time to publish an editorial that would be thought-provoking about this acquisition. Rolex and Bucherer share a long history as Bucherer has been an official retailer of Rolex since 1924 and Jörg G. Bucherer is the last person still in activity to have known and worked with Hans Wilsdorf, the founder of Rolex. Even though Rolex will now be the owner of Bucherer, Jörg G. Bucherer will remain as honorary president of the Bucherer group.
Just because in the watch industry, we always tend to assume that every reader knows everything about all brands and all the details behind the main authorized dealers globally, I have decided to provide some background information about who Bucherer is in the world of watches so that all of you that are not familiar with it, get a more clear perspective into what this acquisition represents.
Bucherer is one of the largest and oldest authorized dealers in the world of watches since 1888 —WEMPE was established 10 years earlier in 1878— and a global destination for watch collectors. In 2018, Bucherer purchased Tourneau in the United States to expand its footprint into this side of the pond as it only operated locations in Europe.
Tourneau was established in 1900 and is the largest luxury watch retailer in the U.S. with 34 retail locations across 9 states and a fully integrated e-commerce website. While most Tourneau stores have been rebranded Bucherer in the United States, there are still a handful of locations that are operating under the Tourneau/Bucherer name including the stores in San Francisco, Naples, Wailea, Lahaina, Boston, Huntington Station, and Arlington, VA. Out of its 34 locations, Tourneau/Bucherer operates seven Rolex boutiques and two Tudor boutiques.
Today, Bucherer carries 33 watch brands —including most brands from the Swatch Group, Sowind, and major Richemont brands—, and 9 jewelry brands, and operates 36 retail locations across the United States, Switzerland, Germany, the U.K., France, Austria, and Denmark. Bucherer often has exclusive partnerships with some of the most prestigious watch brands in the industry by issuing limited-edition releases, rare timepieces, and unique collaborations that cannot be found elsewhere. Bucherer places a high emphasis on providing a luxurious and personalized shopping experience and their stores are often designed with a focus on aesthetics and comfort, creating an inviting atmosphere for customers to explore and appreciate the watches. In addition to being a point of sale for watches, Bucherer also provides top-notch after-sales services, including watch servicing and repairs.
The Press Release From Rolex
PRESS RELEASE
ROLEX ACQUIRES BUCHERER
To preserve the long-standing partnership between the two companies and perpetuate their shared history, Rolex has decided to acquire Bucherer. The watch retailer will keep its name and continue to operate independently. Its integration into the Rolex group will be effective once the competition authorities have approved the takeover transaction.
Geneva, 24 August 2023 – Following the choice made by Jörg Bucherer, in the absence of direct descendants, to sell his company’s business, Rolex has decided to acquire the watch retailer, which was until now an independent entity. This move reflects the Geneva-based brand’s desire to perpetuate the success of Bucherer and preserve the close partnership ties that have linked both companies since 1924.
For more than 90 years, the two businesses have worked alongside one another and have each contributed to the other’s achievements and growth. Today, Rolex stands as one of the leaders of the Swiss luxury watchmaking sector. Bucherer has become an internationally renowned multi-brand retailer, with stores located in Switzerland, the United States, England, Germany, France, Denmark, and Austria.
Bucherer accounts for more than 100 sales outlets worldwide, of which 53 distribute the Rolex brand and 48 distribute the Tudor brand. The watch retailer is also an official after-sales service center for both brands. Its watch servicing workshops employ watchmakers who have been trained by the company itself and are highly qualified.
The Rolex group is convinced that this acquisition is the best solution not only for its own brands but also for all the watch and jewelry partner brands, as well as for all the employees of the Bucherer group.
Bucherer will keep its name and continue to independently run its business. The Group’s management team will remain unchanged. Bucherer’s integration into the Rolex group will be effective once the competition authorities have approved the takeover transaction.
The fruitful collaboration between Rolex and the other official retailers in its sales network will remain unchanged.
The Objective of the Acquisition According to Rolex
“To preserve the long-standing partnership between the two companies and perpetuate their shared history, Rolex has decided to acquire Bucherer. The watch retailer will keep its name and continue to operate independently. Its integration into the Rolex group will be effective once the competition authorities have approved the takeover transaction.”
My Thoughts on the Acquisition
In one of the most unexpected moves in the watch industry, Rolex has decided to acquire Bucherer for different reasons. The reasons I am about to list are my own opinion and the way I see this move as a watch collector, watch industry insider, and marketing maven.
Even though Rolex mentions that Bucherer will continue to run its business independently, this acquisition will provide Rolex with valuable information as to how its competitors do business with authorized dealers and give them access to profit margins, sales incentives, B2C marketing strategies, and even details about new product launches prior to their release. Controlling points of sale should be seen as a conflict of interest and a huge competitive advantage for Rolex and Tudor, rather than a way to perpetuate the success of Bucherer and preserve the close partnership between Rolex and Bucherer. Additionally, this could also be the easiest way for Rolex to quickly expand its own boutique network in a matter of months without having to secure additional partnerships with other ADs —authorized dealers— across European or US cities.
Second, this might mean that Rolex is getting ready to flood the market with more watches that would be exclusively allocated through the Bucherer retail footprint and finally put an end to the grey dealers profiting from the resale of their watches. If Rolex does it this way, then they don’t need to leave any profit on the table and sell their watches at full price without an AD taking a percentage as profit. Now, I do find it weird that the press release from Rolex states a higher number of Bucherer stores than what I found on Bucherer’s website —Rolex states there are more than 100 points of sale, while Bucherer states 36.
Lastly, Rolex might be thinking of doing a greater acquisition at some point that might involve acquiring another big retailer such as The Watches of Switzerland, one of the independent watch groups, Audemars Piguet, or even Patek Philippe at some point.
I know this all sounds very crazy but with the way the watch industry has been shaping in the last decade, no one really knows. Just some food for thought out there. Now, what do you guys think?
For more info on Rolex click here and on Bucherer here.
