Proactive Investors - Watches of Switzerland said it does not believe the acquisition of leading watch retailer Bucherer by Rolex is a strategic move.
Rolex announced last night it was acquiring Bucherer, the world’s biggest luxury watch seller, for an undisclosed sum and breaking with its long-established tradition of being a manufacturer only.
In a statement, the watchmaker said Bucherer, which has more than 100 stores worldwide, will continue to operate independently, keep its name, and sell other watch brands.
Rolex added the decision to acquire Bucherer was made after the family controlling the retailer decided to sell and based on a "decades-long relationship" between the two private Swiss companies.
WoS added that owner Jorg G Bucherer is 86 years old, has no family succession and wants to form a legacy foundation with the proceeds of this transaction.
“This is not a strategic move into retail by Rolex. This is the best-judged reaction to the succession challenges of Bucherer SA,” WoS added.
“There will be no operational involvement by Rolex in the Bucherer business."
Rolex will appoint non-executive board members, WoS added with no change in the Rolex processes of product allocation or distribution developments as a consequence of this acquisition.
WoS said its statement had been reviewed and confirmed by "the highest level of Rolex management at Rolex HQ in Geneve and locally in the UK and US".
Even so, it does mean Rolex can sell its own watches through a chain of 100 stores. Currently, it has only one showpiece outlet in its hometown of Geneva.
Demand for luxury watches is booming with customers having to join waiting lists for the most popular models, a bottleneck that has led to a thriving second-hand market.
Last year, Rolex started to issue certificates of authenticity for its used watches that are sold at authorised dealers, including Bucherer.
Capturing the retail market and giving Rolex and its lower-priced sister brand Tudor a larger presence in stores is a “game changer,” Oliver Mueller, head of Switzerland’s LuxeConsult, an industry consultant, told Bloomberg.