Rumor? Rolex ending partnerships with hundreds of ADs, focusing on boutiques

[brandrea]

I sure miss the look and feel of the mom and pop ADs

[Old Expat Beast]

Rolex has been working the AD model since 1927. Probably time for a change.

[Tortoise99]

Hopefully it’s true - if Rolex watches are available only from Rolex owned boutiques it should put an end to the ridiculous games wannabe customers currently have to play. I don’t want to buy jewellery or other brands of watch before being granted the privilege of being allowed to buy a Rolex

[ronricks]

Rolex has been ending/phasing out relationships with family owned and mom and pop type jewelry stores going on 5 years now. It’s nothing new and is going to continue.

[Mathematoxic]

Until watches becomes available with reasonable wait times and thru a fair system, I wouldn’t care what happens to Rolex or these ADs.

[Ursusarctos]

From a business perspective, why would one of the top brands in the world allow their goods to be sold without their control? The simple answer would be for profit. Rolex, however, is beyond the normal realm of profitable given they don't have shareholders to report to. They can do what they want. The trend for upscale products has been to shift to branded stand alone stores only. Rolex is looking for a path ahead (10-30 years) and having more control makes sense: it's all about branding. They can control the grey market / backdoor sales, CPO, and prices (e.g., discounts or not). It makes sense. Here in Alberta, we lost a small Rolex dealer recently in a city of ca. 63,000 people. I suspect Rolex figured they didn't need that location and the sales would be picked up elsewhere. Of the remaining 4 stores here in Alberta, 2 are independent and 2 are associated with a national chain of jewelry. For a population of 4.3 million in Alberta, one Rolex owned store would likely suffice. I'd guess it would go to Calgary and everyone who wanted a Rolex would head there. It would consolidate their operation and I would bet there would be no drop in demand.

[gerry100]

Porsche did this over the past 15-20 years

For example, my local Porsche dealer looked like a bus station that also sold VWs.

Replaced by a relatively palatial store.

Other dealers within 100-150miles gone

[davek35]

There 2 AD stores in my city. Both are the same company... different locations.

One is in the middle of an 8 figure expansion (longer story short). I got a little tour of the new area which is still under construction.

The new addition will have a walk in area for Rolex. Basically it's own store. Across the store, straight away from the Rolex store will be the same setup, but for Patek Philippe.

Huge expansion with much more area for the entire store. (new dress code for the employees, but I won't touch that topic.) I liked the Rolex corner in the store, but time moves forward. I just hope I dress well enough to enter the new store.

[Harry-57]

What's a fair system? Come to that, what's a reasonable wait time?

[Bartolo]

There is a lot of wackiness in this thread.

"Rolex Boutique" does NOT mean that Rolex owns it.

What it does mean is that Rolex is pushing their ADs to open single-brand boutiques where the product is displayed as Rolex want. So for example this is precisely what happened in Boston. Long's Jewelers opened and runs the Rolex Boutique on Newbury Street. Single-brand storefront, with the interior designed precisely as Rolex want. Rolex doesn't own this; Long's does.

Will Long's be required to go to this model in their other locations that currently display and sell Rolex within a traditional "jewelry store" retail setting?? I don't know. Maybe.

But it's pure silliness in 2024 to think that Rolex itself will finance and open and manage hundreds of retail locations throughout the US. I'll be happy to eat these words if I'm wrong, but nothing in the fine wristwatch business has proven this to be a desirable model. Even AP, with VERY few boutiques, don't own all their boutiques! Many are at least co-owned; here in Boston with Material Good. Same with RM.

Manufactures dictating the physical layout of independently-owned retail locations is NOTHING new. And it's been done in the auto industry for decades. Why do we see BMW dealerships doing extensive interior and exterior renovations? Because to keep their franchise, they must. BMW dictates what a dealership should look like.

[NigeG]

Originally Posted by Bartolo

There is a lot of wackiness in this thread.

"Rolex Boutique" does NOT mean that Rolex owns it.

What it does mean is that Rolex is pushing their ADs to open single-brand boutiques where the product is displayed as Rolex want. So for example this is precisely what happened in Boston. Long's Jewelers opened and runs the Rolex Boutique on Newbury Street. Single-brand storefront, with the interior designed precisely as Rolex want. Rolex doesn't own this; Long's does.

Will Long's be required to go to this model in their other locations that currently display and sell Rolex within a traditional "jewelry store" retail setting?? I don't know. Maybe.

But it's pure silliness in 2024 to think that Rolex itself will finance and open and manage hundreds of retail locations throughout the US. I'll be happy to eat these words if I'm wrong, but nothing in the fine wristwatch business has proven this to be a desirable model. Even AP, with VERY few boutiques, don't own all their boutiques! Many are at least co-owned; here in Boston with Material Good. Same with RM.

Manufactures dictating the physical layout of independently-owned retail locations is NOTHING new. And it's been done in the auto industry for decades. Why do we see BMW dealerships doing extensive interior and exterior renovations? Because to keep their franchise, they must. BMW dictates what a dealership should look like.

Finally a bit of sense in the thread. A Rolex Boutique (or Solus store to be more accurate) in some circumstances may be owned and operated by the brand. In most cases it will be owned and operated by either a large, possibly multi national company (WoS for example), or could be family owned if they have the money to do it.

In the UK we already see it happening more and more. Independents have been told to dedicate more space or else. Some have and more will fall by the wayside. WoS, Goldsmiths, Mappin & Webb - all part of WoS Group if you didn’t already know. Have either started with Boutiques or have dedicated significantly more space.

My local Goldsmiths has approximately 40% of its floor space in one store given over to Rolex. I would expect that soon they’ll be told to open a dedicated store where you have to physically “leave the shop” in order to get to the other brands they sell. In truth I’m surprised that this hasn’t happened already as Goldsmiths operates Tag Heuer, Breitling and Omega boutiques within 50yards of the Rolex part of their Goldsmiths store.

Personally I don’t see any tangible benefit as a consumer. They’ll still be looking at purchase history to look to allocate product. From a corporate identity point of view maybe you will see a Certified Pre Owned section appearing inside the boutique. Currently I have only seen these in the non Rolex areas of a shop. The other AD local to me is family owned and they said Rolex are pushing them hard to be involved in a certified pre owned programme.

I would anticipate that Bucherer will continue to operate as is with full accountability to Rolex. So it will stand on its own feet and continue as before with maybe some subtle changes. From a consumer point of view: it may not appear any different.

I don’t know but I imagine that Rolex operates with a capital finance partner for their trade accounts with their retailer network. Effectively selling the debt to the finance company to “take the risk” with the retailer. Far better for Rolex’s cash flow than dealing direct.


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[mobster600]

Rolex is moving away from jewelry store owner relationship selling and moving into a Rolex owned/operated corporate non-relationship selling strategy.

Rolex doesnt want relationships controlling allocations. Relationships can get personal and create conflicts of interest between the customers, SA, and the Store owner. Customers can be pressured into buying profitable items to get higher priority in the allocation process. SA may feel obligated to offer jewelry to cross sell products offered in the AD. All frowned upon but we can all attest its happened to us.

If the Store owner now becomes Rolex (Bucherer Acquisition). The SA relationship is more focused on Rolex's initiatives and goals, rather then their own. The customer will get a better experience and the SA wont feel pressure to meet quota's or obligations to keep their job from the Store Owner.

This will improve Rolex's brand image and mitigate and/or avoid conflicts of interest. I believe Rolex made the right decision. Unfortunately many AD's will close as a result and/or layoff employees as a result. In the long run, I think it is the right thing to do.

[CarlOver]

I know of a small jewelry store that is located in a strip mall. They bought the unit next door and built out a large Rolex section. The had a very small Rolex section prior to this. Seems interesting that this was done in the past 2 years but it’s likely due to their location. If Rolex was to pull this AD, this jeweler would be in a huge financial mess. ALS has been reducing AD and going boutique route and managing the end sale was the reasoning. They want to ensure that their watches do not end up on the gray market. Time will tell how this all pans out for the current current ADs.

[superpop]

I remember 15 years ago or so GM forced all of their Chevy dealers to build custom showrooms for the Hummer brand. Giant "H" shaped facades that looked very cool and expensive. 5 years later and Hummer was in the toilet as trends changed in the SUV market. Dealers were stuck with the stores. Hope the same thing does not happen here. Doubling output, and forcing dealers to invest in multi million dollar buildings could be the downfall of the brand. The hype is already dying down despite the best efforts of the AD's and Rolex and you throw another million watches into the mix and I am not so sure it is exclusive any more. Most of the US is now embracing more stealth wealth and a the flash is fading. Hope they do not turn into another Breitling or Panerai.

[dandy]

Wasnt this old news?

[WRjr]

Hope so, Rolex should move on from mom and pop, too many characters and opportunists in the jewelry business.

[alphadweller]

If Rolex goes boutique only, it'll be like Porsche or Ferrari. In order to get the hot models, you'll have to buy several other models first. Not sure it's a better solution for the end buyer.

[jb335]

There isn’t a single Bucherer/Tourneau in Los Angeles that sells new Rolex. I have a hard time believing Rolex is going to cut the many very high-end
Rolex boutiques in LA and open a bunch of store that don’t currently exist in the second biggest market in the USA.


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[TomInNJ]

If this AD is losing both Rolex and Cartier at basically the same time, there is something going on that has nothing to do with Rolex and the Bucherer acquisition. The sales associate is obviously savvy enough not to share their dirty laundry, and instead is peddling a story that feeds into pre-conceived notions about Rolex. It’s a cover story.

[BlondesNwatches]

Originally Posted by TomInNJ

If this AD is losing both Rolex and Cartier at basically the same time, there is something going on that has nothing to do with Rolex and the Bucherer acquisition. The sales associate is obviously savvy enough not to share their dirty laundry, and instead is peddling a story that feeds into pre-conceived notions about Rolex. It’s a cover story.

Yea it’s def not coincidence. Rolex and Cartier don’t collude on which dealers to drop, at least as far as I can tell. It’d be highly doubtful.

[jb335]

Originally Posted by TomInNJ

If this AD is losing both Rolex and Cartier at basically the same time, there is something going on that has nothing to do with Rolex and the Bucherer acquisition. The sales associate is obviously savvy enough not to share their dirty laundry, and instead is peddling a story that feeds into pre-conceived notions about Rolex. It’s a cover story.

I lean towards this explanation.

[Dave O]

I've said it twice in this thread already and I'll say it again. Bucherer is NOT taking over sales for Rolex nor will they be able to. And WoS is even smaller than Bucherer, so that's not going to make that much of a difference either to those that think they will take over. Bucherer is a mere 2.5% of the total Rolex AD network. And they aren't everywhere around the globe. Some AD's are closing because they don't want to shell out over 7 figures to remodel their store the way Rolex wants it to be. My AD is currently going through a remodel and will still sell jewelry and other watch brands once the rebuild is complete. Will the AD network shrink as a result of this? Most likely. But not at the scale that some people think it will.

[ratty]

Originally Posted by Dave O

I've said it twice in this thread already and I'll say it again. Bucherer is NOT taking over sales for Rolex nor will they be able to. And WoS is even smaller than Bucherer, so that's not going to make that much of a difference either to those that think they will take over. Bucherer is a mere 2.5% of the total Rolex AD network. And they aren't everywhere around the globe. Some AD's are closing because they don't want to shell out over 7 figures to remodel their store the way Rolex wants it to be. My AD is currently going through a remodel and will still sell jewelry and other watch brands once the rebuild is complete. Will the AD network shrink as a result of this? Most likely. But not at the scale that some people think it will.

I’m curious about your numbers.

In the UK it feels like WoS have almost a monopoly on Rolex sales. How big is WoS in the USA?

[Dave O]

Originally Posted by ratty

I’m curious about your numbers.

In the UK it feels like WoS have almost a monopoly on Rolex sales. How big is WoS in the USA?

According to their website, there are 9 WoS showrooms in the USA. As far as numbers go, watch the two videos below.

https://www.youtube.com/watch?v=MSS8zTB-L_c&t=1s

https://www.youtube.com/watch?app=de...ature=youtu.be

[ratty]

Originally Posted by Dave O

According to their website, there are 9 WoS showrooms in the USA. As far as numbers go, watch the two videos below.

https://www.youtube.com/watch?v=MSS8zTB-L_c&t=1s

https://www.youtube.com/watch?app=de...ature=youtu.be

Thanks for this, I found these videos interesting. Does WoS sell under different brand names in the US?

[Dave O]

Originally Posted by ratty

Thanks for this, I found these videos interesting. Does WoS sell under different brand names in the US?

You're welcome. He has some very good points which make a lot of sense. As far as WoS with a different brand name? Not to my knowledge, but can't be 100% sure.

[L_S_SHOE]

As others have mentioned, many ADs are being forced to invest in costly renovations/build outs. If they won’t or can’t do it, they’re done.

I’ve no personal experience with Bucherer, but I always considered Tourneau to be low end with poor customer service. I was surprised when Rolex took an interest.

Personally, I think the damage is done. I want to deal with a large chain retailer even less than I want to deal a Grey dealer.


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[Zach69SS]

Yes, Rolex is not getting rid of every AD just some of them, that can’t do the new build outs and where they have some of the bigger ADs in the area. The AD I know that lost Rolex was an AD for over 30 years but small and the owner is not a young man anymore and decided not to make the investment. The return was not worth it to him.

Bucherer, will not be the complete answer for Rolex, but a move in the right direction in my opinion. We shall see how it translates to the customer. Better or worse?

WoS is a giant company that is publicly traded and will never lose Rolex the numbers are just too high, what they sell of CPO is crazy not to mention the new pieces. This is why they don’t care if you purchase from them or not and Rolex will do nothing about it ever.

I hope Rolex cleans up the ADs that treat their clients like garbage! Rolex was never like this and what it has become. Buying a new Rolex now is a job, you have work it to get one if you are very luck for some of us.

[whatisarolexym]

I really hope they do not get rid of smaller family-business ADs. They seem to give the best service and have the best chance of getting an allocation.

Bucherer are the most arrogant and the worst customer service ADs in London. Just look at their reviews.
WOS are a close second. Arrogant, rude and highly unlikely to allocate you a watch.

[NigeG]

Originally Posted by whatisarolexym

I really hope they do not get rid of smaller family-business ADs. They seem to give the best service and have the best chance of getting an allocation.

Bucherer are the most arrogant and the worst customer service ADs in London. Just look at their reviews.
WOS are a close second. Arrogant, rude and highly unlikely to allocate you a watch.

Agree re family business ADs.

Never dealt with Bucherer. Had mixed experiences with WoS at LHR T5 Rolex store.

The first time when it was new and recently opened was very positive.

More recently has been crap. Where I was politely told that I had no “recent purchase history with us”. The SA checked my name and post code. He followed this up with “buy a cheap Tissot at our other store on this trip. Then perhaps a Tudor or something similar on your next one. Then you might get the call from here”. “I get regular customers to book a return flight to Manchester or Edinburgh so they can come and collect”

As I said earlier - Shysters


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