In a stunning move Rolex acquires watch retailer Bucherer

Two historic names in the watch industry have now become partners. Iconic Swiss watchmaking brand, Rolex, has acquired Bucherer, one of the world’s largest watch retailers.

In a statement, Rolex said Bucherer will keep its name and continue to operate as an independent company.

Rolex said it made the decision to buy the retailer after third generation owner, J?rg Bucherer, in the absence of direct descendants, was considering selling the company.

“This move reflects the Geneva-based brand’s desire to perpetuate the success of Bucherer and preserve the close partnership ties that have linked both companies since 1924,” Rolex said in the statement.

The acquisition needs the approval of Swiss competition authorities.

Bucherer is an international multibrand retailer of watches and jewelry, with stores in Switzerland, the United States, England, Germany, France, Denmark and Austria. The retailer has been undergoing a major expansion in the U.S. market, including the recent reopening of the largest watch store in the country. Bucherer has more than 100 sales outlets worldwide, of which 53 distribute the Rolex brand and 48 distribute the Tudor brand, Rolex’s sister company.

“This will dramatically change now,” says Alexander Linz of WatchAdvisor, a popular YouTube program about watches and the industry. “There is no reason Rolex will not push its watches into all 100 stores. It won’t be tomorrow but it will happen.”

In addition, Linz says that this acquisition will likely allow Rolex to sell its most sought-after watches exclusively through Bucherer stores. This is despite the statement by Rolex saying that the relationship of other retailers in its sales network will remain unchanged.

Linz says that Jean-Frédéric Dufour “is one of the most brilliant managers in the industry” and this acquisition is a huge win for the watch brand.

Rolex, in its statement, says Bucherer’s management team will remain unchanged.

“The Rolex group is convinced that this acquisition is the best solution not only for its own brands but also for all the watch and jewelry partner brands, as well as for all the employees of the Bucherer group,” Rolex said.

Source: Anthony DeMarco, Forbes