3 AD visits in the past week - brutal

[seasubmariner]

Originally Posted by Roger Lococco

Made 3 visits to ADs in the past week. Absolutely brutal.



1. Canada. Counted 73 DJs and 3 YM2s. No other watches on display. 5 SAs and 0 customers. Great service, as is always the case at this AD, even if they never have any watches that I want.



2. U.S. Well known AD chain the Southeast. 2 SAs eating take out Chinese food on the display case at the same time. Seemed slightly miffed that I actually chose to enter the store and interrupt their dinner. One of the SAs finally stood up to "greet" me reluctantly. Perhaps 12 DJs in the display. They said that was all they had in the store, nothing else. When I said my wife was interested in a YG DD (the green one), one SA (the one that stood up) got more energetic and said they might have one in their safe in the back.



3. U.S. See photo. I didn't even bother entering this store. A few SAs and a security guard.

Looks like they just closed the business entirely, and he is impatiently waiting for the landlord to come for ending the contact, then he will be locking the doors for the last time soon and leaving there for good :) It feels like thinking they better to turn of the lights and sit and the dark.

[Rori]

Ridiculous. As someone joked about it, looking at those cases one would think Rolex is going out of business. :-)


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[brucethemanlee]

Originally Posted by bonovox

I would have walked into that last one and told them you came by to purchase a White Daytona just for the fun of it.

That would have been hilarious


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[RJRJRJ]

Originally Posted by seasubmariner

Looks like they just closed the business entirely, and he is impatiently waiting for the landlord to come for ending the contact, then he will be locking the doors for the last time soon and leaving there for good :) It feels like thinking they better to turn of the lights and sit and the dark.

He's texting his client to know that his watch has arrived and will never see the showcase.

[brucethemanlee]

Originally Posted by uhren917

Rolex loves this. It is better than having unsold watches sitting around gathering dust and then being sold at a discount on Jomashop.

Exactly

Empty cases = AD selling everything Rolex sends them = Rolex selling everything they make

Even though AD has no stock on display they are selling everything they have. Better than having ton of inventory gathering dust


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[WatchLurv]

Originally Posted by brucethemanlee

Exactly

Empty cases = AD selling everything Rolex sends them = Rolex selling everything they make

Even though AD has no stock on display they are selling everything they have. Better than having ton of inventory gathering dust


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Rolex always sold what they made. Nothing was ever held back in their secret storeroom at their HQ (whether it was Rolex Canada, Rolex USA, Rolex Geneva, Rolex Italy or Rolex APAC)

ADs either get credit or pay up straight for a delivery. A delivery they can't reject. Nothing has changed for Rolex. Everything has changed for the AD as their revenue is now more tightly controlled by Rolex, i.e.: No fulfillment upon requests, cut back on supply, renovation of the shop (whenever that's requested), advertisement budget set aside by the AD upon Rolex's demand and (one day) a greater revenue share going towards Rolex's pockets to come.

It's good to be Rolex. Sucks to be an AD.

[Speedbird-1]

Who is paying the rent, utilities bills, business rates and salaries of the SA's, the maintenance staff and cleaners?

Assuming that an AD has sold his stock to the local grey, and not to 'customers'
what are they telling Geneva.
Rolex can't be happy with the empty shops and staff just stooging around watching the clock for going home time.

[Abmatt2002]

Originally Posted by Lt Virgil Hilts

Who is paying the rent, utilities bills, business rates and salaries of the SA's, the maintenance staff and cleaners?

Assuming that an AD has sold his stock to the local grey, and not to 'customers'
what are they telling Geneva.
Rolex can't be happy with the empty shops and staff just stooging around watching the clock for going home time.

Other than the brand image, what would Rolex care if the shop is empty. They don’t own it and it’s not costing them anything. They’ve made their money selling the watches to the AD.

[Speedbird-1]

Originally Posted by Abmatt2002

Other than the brand image, what would Rolex care if the shop is empty. They don’t own it and it’s not costing them anything. They’ve made their money selling the watches to the AD.

I understand what you're saying.
"Brand Image" has always what been Rolex are about.
They spend huge amounts on advertising at events patronized by the 'common man'. The same man that is seeing dead AD's everywhere.
It doesn't make sense to me.
'Nothing for sale', doesn't necessarily equate as success.

Those empty shops are costing somebody an absolute fortune. Surely unsustainable, for even the deepest pockets.

Maybe, online, direct sales are not too far away.
Everyone has a Rolex showroom in their hand these days.

[gregouille]

Originally Posted by bonovox

I would have walked into that last one and told them you came by to purchase a White Daytona just for the fun of it.

I would have done the same.
But honestly poor SA... They days must be so annoying with nothing to sale and people always asking for the same unicorn

[aabernst]

That photo of Lenkersdorfer's is wild. I've always found them impossible to deal with but there is no way they can be thrilled with 1/3rd a store filled with empty cases, for folks out of the area that is some $$$ real estate.

[Ravager135]

I've said it so many times; I am glad I built my Rolex collection when I did. Depending on the model, the premiums trusted sellers are asking aren't that bad. Unless you really want a Daytona, 116610LV, or BLNR/BLRO, with this state of affairs it's just better to pay a few extra grand and enjoy now.

[stlwatchlvr]

Originally Posted by WatchLurv

Rolex always sold what they made. Nothing was ever held back in their secret storeroom at their HQ (whether it was Rolex Canada, Rolex USA, Rolex Geneva, Rolex Italy or Rolex APAC)

ADs either get credit or pay up straight for a delivery. A delivery they can't reject. Nothing has changed for Rolex. Everything has changed for the AD as their revenue is now more tightly controlled by Rolex, i.e.: No fulfillment upon requests, cut back on supply, renovation of the shop (whenever that's requested), advertisement budget set aside by the AD upon Rolex's demand and (one day) a greater revenue share going towards Rolex's pockets to come.

It's good to be Rolex. Sucks to be an AD.

This is a really interesting perspective. One that I can add from personal experience is that smart ADs are leveraging this to sell other things. I recently bought my FIRST ROLEX (DJ41 Black face w/ Jubilee- LOVE IT) but in the process I’ve bought a Tudor and a IWC that they had in their cases. While not exactly a lost leader, I’m guessing the Rolex was the item they were least excited to sell me.

My AD said while they don’t like the empty cabinets they sold more Rolex’s in 2019 than they ever had. Seems to be working.


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[Rrpdc]

Originally Posted by 1Zach1

Definitely not. They always have more stock than that, plus carry multiple brands.

+1. Def not that store.

[1Zach1]

Originally Posted by Rrpdc

+1. Def not that store.

It is, I was corrected above, you can see the name in the reflection. The angle of the picture isn't what I'm used to seeing and I honestly can't remember ever seeing it that empty in the cases.

That's okay, I've always found the staff at both Liljenquist&Beckstead's to be more friendly and open.

[Mr DateJust]

Originally Posted by djyolky

A 20% deposit down.... To look at a watch..

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I was thinking that too......

[garyk]

I remember being offered a daytona in the mid 2000s. i asked if I could call the SA right back and in the three minutes, they sold it. I had no idea that the daytona craziness would spread to so many of their products and the company itself.

[Bigblu10]

Originally Posted by stlwatchlvr

This is a really interesting perspective. One that I can add from personal experience is that smart ADs are leveraging this to sell other things. I recently bought my FIRST ROLEX (DJ41 Black face w/ Jubilee- LOVE IT) but in the process I’ve bought a Tudor and a IWC that they had in their cases. While not exactly a lost leader, I’m guessing the Rolex was the item they were least excited to sell me.

My AD said while they don’t like the empty cabinets they sold more Rolex’s in 2019 than they ever had. Seems to be working.


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Did they sell them to customers in the front door, or grey market watch dealers out the back door? That is the 64K question.

[dtwer]

Look at it this way. What other companies don't haggle with customers, sell out every last one of their products, and have customers voluntarily fork over deposits for the privilege of being on the wait list?

I would love to have a business like Rolex. In retail, having inventory that you can't move really sucks.

[Bigblu10]

Originally Posted by uhren917

Rolex loves this. It is better than having unsold watches sitting around gathering dust and then being sold at a discount on Jomashop.

Rolex AD's have hardly ever had unsold stock sitting around long enough to gather dust barring a few undesirable models. Seeing a display case with not even one watch for sale is downright embarrassing and pitiful. Those who say Rolex should go to online selling....well they already have. Thanks to resellers and grey market independent watch dealers.

[walkman2727]

my question is , do they need to pay rent, salary to the SAs?

[Bigblu10]

Originally Posted by walkman2727

my question is , do they need to pay rent, salary to the SAs?

Absolutely. What business doesn't? Rent, utilities, employee salary, business advertising/website costs.

[1Zach1]

Originally Posted by walkman2727

my question is , do they need to pay rent, salary to the SAs?

They are selling almost every piece of Rolex product that comes through the door, the SAs must be loving life. Collectors/investors/flippers are walking in knowing there won't be any SS models but are happy to have their name and info taken. Rando's off the street can be directed to PM Rolexes or one of the other brands being sold in the store.

[GoingPlaces]

This is not a good look. Could care less how much money Rolex is making and they are loving this as they are in control of their market etc.. Should this narrative continue, this becomes a real estate discussion. They're already closing stores in weaker or irrelevant markets. Next, do they re-do the displays or shrink the stores? Close more stores until how many? Either way this cannot sustain and look good at the same time.

[SDR581]

I won't be surprised if Rolex is going to only keep Tourneau, watches of Switzerland and other large prominent chains as Authorized dealers. Maybe only one AD in every major city.

The mom n pop Rolex AD will no longer exist.

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[Speedbird-1]

Originally Posted by Bigblu10

Did they sell them to customers in the front door, or grey market watch dealers out the back door? That is the 64K question.

The fact that greys have more new watches for sale than AD's, answers your question.

[samson66]

My God, that picture tells it all. Wow!

[FATO]

Originally Posted by P1nky_Up

Is that last picture Lenkendorfers in Tysons Corner Mall? Looks like their setup

I don’t think it is. I don’t recognize that SA. I bought a couple of watches from them.


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[WatchLurv]

Originally Posted by stlwatchlvr

This is a really interesting perspective. One that I can add from personal experience is that smart ADs are leveraging this to sell other things. I recently bought my FIRST ROLEX (DJ41 Black face w/ Jubilee- LOVE IT) but in the process I’ve bought a Tudor and a IWC that they had in their cases. While not exactly a lost leader, I’m guessing the Rolex was the item they were least excited to sell me.

My AD said while they don’t like the empty cabinets they sold more Rolex’s in 2019 than they ever had. Seems to be working.


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Your AD needs to check their inventory of what they got in and what was sold. It creates an illusion that they receive 10 watches on a Friday and then they're all sold by Sunday. They were with 100% guarantee holding more stock in 2015, i.e. receiving bigger shipments from Rolex.

Their margins are bigger on the IWC given you bought it for full price. IWC's standard discount for end-user is around 35%.

[Arcticsub]

Originally Posted by uhren917

Rolex loves this. It is better than having unsold watches sitting around gathering dust and then being sold at a discount on Jomashop.

I'd say- as noted previously in this thread- rolex CEO Dufour loves this.

Steel no longer sold at a discount, yes, but sales volume has to be down. OP's pic says it all really.