And Just Like That, Rolex Has Become A Major Player In Retail

A few days ago, Rolex announced its acquisition of Bucherer, a multi-brand retail store with over 100 locations worldwide. Thus far, 53 Bucherer locations have operated as authorized dealers for Rolex and 48 for Tudor. The Bucherer company also operates a large after-sales service operation for Rolex and Tudor watches.

Bucherer in Luzern — Image: Bucherer

Bucherer and Rolex — Two giants

The acquisition was an opportunity that Rolex seized when the moment was right, as Jörg Bucherer decided to sell the company. The 87-year-old has no direct descendants to inherit the Bucherer chain, which is estimated to do about 2 billion Swiss francs in annual sales.

Jörg Bucherer — Image: The Rake

Bucherer stores go back to 1888, when Carl-Friedrich and Luise Bucherer opened their first shop in Lucerne, Switzerland. In 1924, Ernst Bucherer (son of Carl-Friedrich) agreed with Hans Wilsdorf to offer Rolex watches in their shops. Jörg Bucherer took over the management 46 years ago and expanded to other countries. According to Rolex, he’s also the last person still in activity to have known and worked with their founder Hans Wilsdorf. Bucherer has over 2,400 staff, and the company’s headquarters is still in Lucerne.

Besides Rolex and Tudor, Bucherer is an authorized dealer for many other brands, including its Carl F. Bucherer brand.

Bucherer boutique — Image: Bucherer

Rolex starts its retail adventure

With a joint history dating back to 1924, Rolex is confident enough to start its retail adventure with Bucherer. Thus far, Rolex has only one company-owned-and-operated boutique (in Geneva). All other points of sale are managed through Rolex’s partners. Bucherer will continue to run the boutiques the same way as before, only now as part of the Rolex group. Other Rolex points of sale will remain as they were.

Rolex Sky-Dweller

Implications of the acquisition of Bucherer

What implications will this have on the new and pre-owned market operated by others? With Rolex’s previous announcement to go CPO (Certified Pre-Owned) with Bucherer, the brand will probably expand this activity further. What’s more, Rolex now has access to more insights than ever.

Acquiring retail knowledge

These are insights into the demand and sales of other brands that Bucherer offers, as well as what it takes to be a retailer and deal with end clients (and waitlists, for example). This knowledge might make Rolex even more powerful than it is today as it can optimize its processes after getting a better understanding of the end consumer.

The acquisition of Bucherer will probably also lead to Rolex making steps into e-commerce, although that does sound like a long-term plan as the brand has always actively fought against it. But we also never thought Rolex would become a retailer. The company has always indicated that it would instead stick to what it is good at (making watches) and let its partners handle the sales to consumers.

The stocks of Watches of Switzerland Group went down after the news on Bucherer broke

The impact on other Rolex authorized dealers

It is too early to discuss the long-term impact on the existing retailer network for Rolex and Tudor watches. The sudden impact on the shares of Watches of Switzerland, however, makes it painfully clear that it will affect other retailers.

I imagine that other authorized Rolex dealers can raise concerns about the supply of Rolex watches to Bucherer locations compared to their points of sale. Will Bucherer get the “boutique only” status that allows other brand boutiques access to specific models? Or will Bucherer at least receive new watches more quickly?

Rolex Yacht-Master in titanium

How will other watch brands respond?

I am also curious to see what the other brands that Bucherer represents will do. Brands directly competing with Rolex might get the feeling that the company might get a bit too much insight.

And with the acquisition of Bucherer, there are now also three watch brands part of the Rolex group. Will Rolex be involved in further developing the Carl F. Bucherer watch brand and helping it step out of its relative anonymity?

It’s all to be continued! Until then, let us know in the comments what you think of this acquisition by Rolex. Do you applaud this move into retail, or do you have concerns?