Rolex has made official its acquisition of the family-owned Bucherer Group, owner of around 100 points of sale worldwide. The strategic motivations are obvious: the Geneva-based watchmaker wants to strengthen its position and develop sales in its own stores.
Aiming to maintain the strong links between the two companies, Swiss luxury watch manufacturer Rolex has announced that it has acquired Bucherer, one of Europe’s largest watch and jewelry retailers and owner of the American chain Tourneau.
Through a strategy of vertical integration of its retail partners (Kurz in 1989, Swiss Lion in 2001, The Watch Gallery in 2017 and Tourneau in 2018), its store network has expanded to Switzerland, Denmark, England and France.
Through its Tourneau brand, Bucherer also has 34 points of sale in the USA, including New York, Las Vegas but also the Miami and Los Angeles suburbs.
This transaction ensures that the Swiss high-end watch brand retains its name and continues to operate autonomously, while full integration within the Rolex group is pending approval from the competition authorities.
This merger is the result of Jörg Bucherer’s decision to sell his company due to the absence of direct descendants. Rolex’s intentions in acquiring this well-established watch retailer could not be clearer: to perpetuate Bucherer’s legacy of success and honor the close partnership the two brands have enjoyed since 1924. For more than 90 years, the two brands have supported each other’s growth and achievements.
Today, Rolex occupies a leading position in the Swiss luxury watch sector. In 2021, the brand titan with the crown sold 1.05 million timepieces and generated sales of $8.8 billion.
Besides, Bucherer has established itself as an internationally recognized watch retailer, with around 100 points of sale worldwide. According to a 2017 Forbes article, the Bucherer Group achieved estimated sales of 1.5 billion Swiss francsin 2016, with the net worth of third-generation owner Jörg Bucherer standing at 1.75 billion Swiss francs.
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Selling in its own stores
This acquisition paves the way for the widespread sale of Rolex watches in its own stores. To date, only one store in the world is owned and operated by Rolex, in Geneva, its home town. Rolex has clarified that relationships with its current partners, also known as “official Rolex retailers”, will remain unchanged.
Nevertheless, the acquisition will give the prestigious brand greater control over the sale of its watches, both new and pre-owned. Jon Cox, head of Swiss investments at Kepler Cheuvreux, said Rolex’s entry into retail could have implications for listed sellers such as UK-based Watches of Switzerland Group and Singapore’s The Hour Glass.
“On the face of it, this is shocking for all the other official Rolex retailers, as Rolex has always said that it is committed to independent retail distribution and has no desire to move into own-retail,” said Cox.
This acquisition marks the second major change in Rolex’s retail strategy in less than a year. In December, the company unveiled a program to issue certificates of authenticity for its pre-owned watches sold through authorized retailers, including Bucherer. Rolex watches dominate the pre-owned market, accounting for more watches bought and sold by value than any other brand. According to Oliver Mueller, Director of LuxeConsult (Switzerland), this grip on the retail market and the increased presence of Rolex and its more affordable sister brand Tudor in stores could change the game significantly.
Currently, 53 of Bucherer’s 100 points of sale sell Rolex watches, and 48 sell Tudor models.
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