Watches of Switzerland Group’s shares crashed 27% as Rolex announced confirmation that it had purchased one of its main rivals, Bucherer.
Prior to the acquisition, Rolex had just one store in Geneva but Bucherer takes this to 100 stores in which Rolex can now sell its watches in Switzerland and Europe as well as the US.
In a statement following the announcement by Rolex, Watches of Switzerland Group said: “This is not a strategic move into retail by Rolex. This is the best-judged reaction to the succession challenges of Bucherer SA.” They added: “There will be no operational involvement by Rolex in the Bucherer business.Rolex will appoint non-executive Board members.There will be no change in the Rolex processes of product allocation or distribution developments as a consequence of this acquisition.”
They also stressed that this information has been reviewed and confirmed by the highest level of Rolex management at Rolex HQ in Geneve and locally in the UK and US.
