Just Like That- Has Become A Major Player In Retail

August 23, 2011

A few days ago, announced its acquisition of Bucherer, a multi-brand retail store with over 100 locations worldwide. Thus far, 53 Bucherer locations have operated as authorized dealers for and 48 for Tudor. The Bucherer company also operates a large after-sales service operation for and Tudor watches.Bucherer in Luzern - Image: BuchererBucherer and - Two giantsThe acquisition was an opportunity that seized when the moment was right, as J?rg Bucherer decided to sell the company. The 87-year-old has no direct descendants to inherit the Bucherer chain, which is estimated to do about 2 billion Swiss francs in annual sales.J?rg Bucherer - Image: The RakeBucherer stores go back to 1888, when Carl-Friedrich and Luise Bucherer opened their first shop in Lucerne, Switzerland. In 1924, Ernst Bucherer (son of Carl-Friedrich) agreed with Hans Wilsdorf to offer watches in their shops. J?rg Bucherer took over the management 46 years ago and expanded to other countries. According to , hes also the last person still in activity to have known and worked with their founder Hans Wilsdorf. Bucherer has over 2,400 staff, and the company s headquarters is still in Lucerne.Besides and Tudor, Bucherer is an authorized dealer for many other brands, including its Carl F. Bucherer brand.Bucherer boutique - Image: Bucherer starts its retail adventureWith a joint history dating back to 1924, is confident enough to start its retail adventure with Bucherer. Thus far, has only one company-owned-and-operated boutique (in Geneva). All other points of sale are managed through s partners. Bucherer will continue to run the boutiques the same way as before, only now as part of the group. Other points of sale will remain as they were. Sky-DwellerImplications of the acquisition of BuchererWhat implications will this have on the new and pre-owned market operated by others? With s previous announcement to go CPO (Certified Pre-Owned) with Bucherer, the brand will probably expand this activity further. Whats more, now has access to more insights than ever.Acquiring retail knowledgeThese are insights into the demand and sales of other brands that Bucherer offers, as well as what it takes to be a retailer and deal with end clients (and waitlists, for example). This knowledge might make even more powerful than it is today as it can optimize its processes after getting a better understanding of the end consumer.The acquisition of Bucherer will probably also lead to making steps into e-commerce, although that does sound like a long-term plan as the brand has always actively fought against it. But we also never thought would become a retailer. The company has always indicated that it would instead stick to what it is good at (making watches) and let its partners handle the sales to consumers.The stocks of Watches of Switzerland Group went down after the news on Bucherer brokeThe impact on other authorized dealersIt is too early to discuss the long-term impact on the existing retailer network for and Tudor watches. The sudden impact on the shares of Watches of Switzerland, however, makes it painfully clear that it will affect other retailers.I imagine that other authorized dealers can raise concerns about the supply of watches to Bucherer locations compared to their points of sale. Will Bucherer get the boutique only status that allows other brand boutiques access to specific models? Or will Bucherer at least receive new watches more quickly? Yacht-Master in titaniumHow will other watch brands respond?I am also curious to see what the other brands that Bucherer represents will do. Brands directly competing with might get the feeling that the company might get a bit too much insight.And with the acquisition of Bucherer, there are now also three watch brands part of the group. Will be involved in further developing the Carl F. Bucherer watch brand and helping it step out of its relative anonymity?Its all to be continued! Until then, let us know in the comments what you think of this acquisition by . Do you applaud this move into retail, or do you have concerns?