I normally avoid comments about Dealers....

[NoVaSubowner]

But this feels like a requiem more than a comment.

I went into Kings in Old Town to get my wife's watch bracelet adjusted. The son of the owner informed me that they were losing Rolex effective the end of the year.

Apparently Rolex USA informed them that they were moving away from small shops like Kings, towards the high traffic store/AD owned boutique model, which for the life of me I can't understand why they would have more confidence in a shop with competing brands as opposed to a shop that highlighted Rolex.

This is also after they remodeled the shop a few years ago to accommodate Rolex's new displays, not cheap by sense of the word at all.

The owners were really good, civic minded people who supported a lot of local organizations and charities. It was an old school place to buy a watch, like many of the Rolex dealers used to be.

It's left a sour taste with me... the entire trend towards the Tourneaus of the world as opposed to the small mom and pop stores. Stores that put Rolex on the map in this country.

[pickettt]

It is a shame.

[Robtayham]

From a Rolex standpoint, this is actually a good thing.

Rolex has to reduce the number of ADs; and they have to have the remaining ADs in the major markets.

You don’t see high end luxury good companies in small markets. There’s a reason why.

This will not only help the brand, but it will also help the buyers.

[AK797]

Same thing happening to the High Street with the rise of Amazon and internet shopping, sad to think one man, a CEO, has 100 billion that otherwise would have been paid as salaries to thousands of working class people, price of conglomeration.

[Nikrnic]

And so it goes. The rich get richer..

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[brandrea]

Sorry to see these smaller ADs go as well, such is life

[Bigblu10]

Originally Posted by Robtayham

From a Rolex standpoint, this is actually a good thing.

Rolex has to reduce the number of ADs; and they have to have the remaining ADs in the major markets.

You don’t see high end luxury good companies in small markets. There’s a reason why.

This will not only help the brand, but it will also help the buyers.

Wait a minute. Small market? Alexandria, Virginia across the Potomac from Washington, DC? Hardly a "small market". Northern Virginia along with DC suburbs of Maryland are among the wealthiest counties in the entire USA!
BTW OP, I bought my TT Submariner Bluesy from King's back in the mid 90's and they were a joy to deal with. Truly a sign of the times unfortunately.

[locutus49]

I was friends with the owners - went to the same charity events and bought Rolexes there - and I am saddened by this news.

Originally Posted by NoVaSubowner

But this feels like a requiem more than a comment.

I went into Kings in Old Town to get my wife's watch bracelet adjusted. The son of the owner informed me that they were losing Rolex effective the end of the year.

Apparently Rolex USA informed them that they were moving away from small shops like Kings, towards the high traffic store/AD owned boutique model, which for the life of me I can't understand why they would have more confidence in a shop with competing brands as opposed to a shop that highlighted Rolex.

This is also after they remodeled the shop a few years ago to accommodate Rolex's new displays, not cheap by sense of the word at all.

The owners were really good, civic minded people who supported a lot of local organizations and charities. It was an old school place to buy a watch, like many of the Rolex dealers used to be.

It's left a sour taste with me... the entire trend towards the Tourneaus of the world as opposed to the small mom and pop stores. Stores that put Rolex on the map in this country.

[locutus49]

I strongly disagree. It is ADs in towns like Alexandria (which is actually a city) that enable people outside of metro areas to buy Rolexes. I think this will cause more people to buy from the internet.

Originally Posted by Robtayham

From a Rolex standpoint, this is actually a good thing.

Rolex has to reduce the number of ADs; and they have to have the remaining ADs in the major markets.

You don’t see high end luxury good companies in small markets. There’s a reason why.

This will not only help the brand, but it will also help the buyers.

[alphasports]

Yeah that stinks.

[e dantes]

Originally Posted by Robtayham

From a Rolex standpoint, this is actually a good thing.

Rolex has to reduce the number of ADs; and they have to have the remaining ADs in the major markets.

You don’t see high end luxury good companies in small markets. There’s a reason why.

This will not only help the brand, but it will also help the buyers.

It will help the buyers in, or near, big cities. Many of us owners do not live near any place where Rolex will have boutiques.

I find it sad that it will make it even more difficult for those of us not in those places.

[NoVaSubowner]

Originally Posted by Robtayham

From a Rolex standpoint, this is actually a good thing.

Rolex has to reduce the number of ADs; and they have to have the remaining ADs in the major markets.

You don’t see high end luxury good companies in small markets. There’s a reason why.

This will not only help the brand, but it will also help the buyers.

You need to stop by Alexandria Old Town next time you are in DC. I guarantee you the demographics are far from "small market". And we are directly across the river from Washington, DC Not exactly a small market by itself either.

[Bigblu10]

Originally Posted by locutus49

I strongly disagree. It is ADs in towns like Alexandria (which is actually a city) that enable people outside of metro areas to buy Rolexes. I think this will cause more people to buy from the internet.

King street in old town is a great place to stroll in the summertime, have a nice dinner at one of the fine eateries and watch the entertainment down near the water. There is no lack of $$ there, as you know with those old colonial era townhomes selling for $$millions. You have Tourneau in pentagon city, Lenkersdorfer in Tysons mall and their sister store and Tiny Jewel box in DC. And another AD up in Frederick, MD. I guess Rolex wants high volume, large boutique style AD's with lots of fancy store swag to surround you. Problem is there is nothin' in the display cases.

[aczaja10]

I hate to hear this stuff. As a small business owner myself (lawyer) I find that the best of everything is in the small shops. At one time, I assumed everything would go the way of the Internet and brick and mortar shops would fall prey to conglomeration, but I am thinking now that this is only temporary and cyclical. I think things will return to mom and pop stores once the aggravation of conglomeration sets in and drives people away from these monstrosities.

[Rescue 26]

My AD told me recently that Rolex is reducing their dealership numbers worldwide. He cited the US as an example, and stated that they are reducing/have reduced the number of AD's from 4000 to 3000. He also said Rolex wants their boutiques to sell nothing but Rolex, ie no other watch brands, no jewellery, etc. (not even Tudor). The gist of the conversation was that Rolex wanted to become more exclusive.

[Bizcut1]

Originally Posted by Robtayham

From a Rolex standpoint, this is actually a good thing.

Rolex has to reduce the number of ADs; and they have to have the remaining ADs in the major markets.

You don’t see high end luxury good companies in small markets. There’s a reason why.

This will not only help the brand, but it will also help the buyers.

Yeah. Sure. This is one brand so in need of “help.”

Whatever that means.

It won’t help any buyers either. That makes no sense. Besides, how is a suburb of Washington DC considered small market. No, there has to be more to this story.

[Rebel]

I was stationed there in the Army. Purchased a replacement wedding band from them. They were great to deal with on a small item such as that.

Sad day.

[beshannon]

Interesting

I had a poor experience with them and would not shop there again or buy a Rolex from them after the way I was treated

[timepieceluvr]

I’m not from this area nor do I know the business but is it possible Rolex asked them to commit to facility or operational changes they weren’t willing to make and they in fact decided to give up the brand instead?

It seems to me that Rolex wouldn’t be interested in leaving an affluent, populated market without a presence and I don’t believe they operate company owned stores in the US.


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[locutus49]

We lived in the historic district of Old Town for over 20 years. It was nice but La Jolla's weather can't be beat.

Originally Posted by Bigblu10

King street in old town is a great place to stroll in the summertime, have a nice dinner at one of the fine eateries and watch the entertainment down near the water. There is no lack of $$ there, as you know with those old colonial era townhomes selling for $$millions. You have Tourneau in pentagon city, Lenkersdorfer in Tysons mall and their sister store and Tiny Jewel box in DC. And another AD up in Frederick, MD. I guess Rolex wants high volume, large boutique style AD's with lots of fancy store swag to surround you. Problem is there is nothin' in the display cases.

[jon_jon]

Small family owned ADs, I presume, are not selling as many Rolex watches as the larger ADs. The Rolex ADs at Tysons and Bethesda get so much foot traffic, I would predict their sales number are a multiple of what the Rolex AD in Alexandria sells. I know many smaller AD's sell slow-moving inventory through the backdoor and who knows if that has something to do with the trend in closing smaller ADs.

[bezler]

Originally Posted by Robtayham

From a Rolex standpoint, this is actually a good thing.

Rolex has to reduce the number of ADs; and they have to have the remaining ADs in the major markets.

You don’t see high end luxury good companies in small markets. There’s a reason why.

This will not only help the brand, but it will also help the buyers.

Small markets?!??!?? Uh.... what?

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[subtona]

It is a sad thing when the mom and pop ships are kicked to the curb.

[Bigblu10]

Originally Posted by locutus49

We lived in the historic district of Old Town for over 20 years. It was nice but La Jolla's weather can't be beat.

I have no intention of retiring here in Virginia land. Will be relocating to MB, South Carolina for fun in the sun. The state is very low taxes and retiree friendly. And the beaches are beautiful.

[Rado63]

Originally Posted by Nikrnic

And so it goes. The rich get richer..

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Yes, sad but true. Get in on the ground floor at the new boutique.

[Investr]

Ive seen this exact scenario happen here. Rolex definitely has a vision of who they want selling the goods. It’s their way or the highway. Kinda ruthless but ......

[CashGap]

My first choice would be Amazon.

Second a vending machine.

Then an Apple Store type place.

And so on.

My last choice is always the mom and pop store, where you need to “develop a relationship” and willingly pay more because they bought a table at the little league banquet.

[EDL7]

Mom and Pops..are going the way of the Dodo bird..
I just closed the doors to my shop after 25 years of brick and mortar retail.. for internet only..
This has been coming for a long time now..
Anyone who doubts this..
Watch out..

[ndrs63]

Perhaps an opportunity for micro brands to sell more watches at these smaller shops. The hype around Rolex is starting to bother me, even though I am also a victim :)


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[77T]

Omega’s DTC sales model may become the next wave for Rolex after they consolidate further.

Once an industry has been disrupted, the channel strategy needs relaunching.





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