Rolex AD's dropping like flies

[sallyhats]

Originally Posted by Art 1

I would think both. If I were an AD with the way things are, the demands Rolex makes. I would dump Rolex too. My personality would not allow me to dictate a supplier pushing me around and not supplying inventory. In my own industry I have dropped suppliers who have played games with me. I always figured another way.

Will this have an impact on inventory since there are less stores to supply? I am assuming with less stores, they are able to monitor the distribution channel better and identify any AD that is moving watches out the back door.

[pickettt]

Originally Posted by Art 1

I would think both. If I were an AD with the way things are, the demands Rolex makes. I would dump Rolex too. My personality would not allow me to dictate a supplier pushing me around and not supplying inventory. In my own industry I have dropped suppliers who have played games with me. I always figured another way.

I see it in the bicycle retail business. Bicycle stores are being pushed around by manufacturers to become their “theme” stores.....or lose their dealership. Personally, in my business (not bicycles), I’m with you...I won’t be pushed around, especially when there’s no upside for my business.

[brandrea]

Originally Posted by tyler1980

i have seen a trend in mall locations getting dropped. Personally im all for it as affluent area or not a mall demographic skews teenager. Im not buying a luxury watch at a mall, because its in a mall. I would specifically search a different location. Im weird like that.

I'm similar in the sense that I like it when the stores are located with like brands of similar quality.

The largest Rolex boutique in Canada is located in a mall but the stores surrounding it are nice upscale brands, so the fit works for me.

Sent from my SM-G960W using Tapatalk

[Rolex addict]

Holy shit!!! Someone started one of these threads and actually named the AD’s. Thank you!!

[tyler1980]

Originally Posted by bobabreath

This puts a huge constraint on the buyer. Rolex's main client is the average guy walking in from the mall and buy a Datejust. Making someone drive more than 30 minutes to a dedicated boutique is going to seriously diminish sales traffic.

only if people are making impulse purchases which i doubt they are. In most cities the car dealerships are not in the city center so if you want to buy a car you have quite a drive. But you go there car shopping and for that purpose so its not a big deal. If you are going to spend 10K on a watch you are probably going out with that purpose so where the AD is is less important because you are seeking it out.

I rarely see 50 year old men strolling the mall anyway. Its teenagers, ladies, and sometimes senior citizens in track suits walking the hallways for exercise.

There is a noticeable gap where the typical Rolex demo should be.

[Art 1]

Originally Posted by pickettt

I see it in the bicycle retail business. Bicycle stores are being pushed around by manufacturers to become their “theme” stores.....or lose their dealership. Personally, in my business (not bicycles), I’m with you...I won’t be pushed around, especially when there’s no upside for my business.

My daughter in law owns some bike stores in Florida and they are haveing a real problem with this. The manufacturers in some cases are selling bikes on line then forcing the dealers to do free warranty work.

[pickettt]

Originally Posted by brandrea

I'm similar in the sense that I like it when the stores are located with like brands of similar quality.

The largest Rolex boutique in Canada is located in a mall but the stores surrounding it are nice upscale brands, so the fit works for me.

Sent from my SM-G960W using Tapatalk

Wrap your head around this one; the AD in my local mall either dropped or got dropped by Rolex. A few months later, another Rolex AD pops up.....a few shops down. Incidentally, they don’t have any desirables either.

[mobster600]

Maybe they will start selling online....AP is doing it.

And heck when a HUGE amount of sales are online businesses and Greys, why wouldn’t they?

It’s 2019....give it 2-3 years or sooner 100% they will launch online

[pickettt]

Originally Posted by Art 1

My daughter in law owns some bike stores in Florida and they are haveing a real problem with this. The manufacturers in some cases are selling bikes on line then forcing the dealers to do free warranty work.

I know, it ridiculous. I feel for her. A lot of the theme store manufacturers require the shops to buy accessories, parts, and clothing from them too. They call that racketeering in any other business. I’m blessed in my relationships in the industry that I don’t have to buy in that environment.

[sechsgang]

Originally Posted by bobabreath

This puts a huge constraint on the buyer. Rolex's main client is the average guy walking in from the mall and buy a Datejust. Making someone drive more than 30 minutes to a dedicated boutique is going to seriously diminish sales traffic.

Making them drive an hour maybe, but nowadays not a lot of random people are spending 5-8k on Rolex on a whimsey while at the mall or walking by.

[watchwatcher]

We lost one in my neck of the woods, but fortunately, I was able to make friends with another about 90 minutes away.

[train-time]

Originally Posted by samson66

Maryland resident here. We lost two out of our seven AD's this past week. Columbia Mall - Edward Arthur Jewelers and much more shockingly Annapolis Mall - Liljenquist & Beckstead Jewelers which was a great AD I have used many times over the years. I spoke to the manager at Columbia and he complained about the lack of stock from Rolex. I'm sure it was the same situation in Annapolis. For me on the eastern shore, Annapolis and Columbia were my closest stores. Now I have to go to DC or Baltimore, or northern Delaware to get to an AD.

Any reports from other areas of the Country or world on AD's either dropping Rolex or being dropped by Rolex? This is starting to get bad. Annapolis and Columbia are both pretty affluent areas around here. If they drop Rolex there it could happen anywhere...

Absolutely correct! Don't forget the AD that was in California, MD -- also gone as well as Smythe (3 locations) in Baltimore, Annapolis and Ellicott City; J Brown in Baltimore. And up my way in the last few years the ADs in Hagerstown (R Bruce Carson); Hanover, PA (Garrick's); and York, PA (White's) all lost the brand. John White, a second generation jeweler actually closed his business after Rolex pulled out. I was also referred to a couple out of the area who no longer have the brand - Mann's in Ohio and Scherer's in Buffalo, NY (over 50 years with Rolex).

[214270Explorer]

I wouldn't think on-line sales would work in the long run for a lot of buyers.

It would work out well for the watch company because they would get money directly from the sales and having to not deal with middlemen (reduced company costs of shipping to AD's, dealing with making AD's update their storefronts, display cases, etc.)

It might be bad for the buyers, because buying sight unseen without the ability to first try on a particular watch, or a "similar model", buyers may find themselves unhappy with their purchase when the model just "does not work out" for them.

Could the end result be supplying many more watches to the Gray's?

Something to ponder.

[Dr. Robert]

No changes in the San Francisco Bay Area, But the ADs here have little or no stock of SS Rolex or newer Tudor watches.

[TheWatchEnthusiast]

My AD that got me few of the watches I wanted is under true pressure by Rolex for the past year after being 30plus years an AD for them in the same mall location. They started with the location stating to them that the mall is not in an affluent area and doesn’t attract the right crowd that they want to appeal. So there was an advance notice of relocation. Last year they told them that they don’t sell enough PM and TT non professional line watches. Then they cut them off totally in the middle of November saying that they reached their allocation quota for the year. They got no more deliveries of watches of any kind until the middle of January. Their first delivery was non professional watches only but one Explorer I.
The store looks dramatically empty and now the manager is not talking to me as openly as before saying that they are working with Rolex on a new location within the next year. But I think Rolex is starving them out already and it doesn’t seem they will be around much longer. Same because I liked the type of communication I had with them and I will definitely not put the same effort and money to start a new relationship with another AD unless it happens by chance.
To me Rolex corporate has decided to take the brand in a new direction and we just witnessing the effects of that transition.
Eliminating weaker smaller less fancy ADs is part of this.


Sent from my iPhone using Tapatalk

[timedate]

online is only a matter of time, and why wouldnt it be?

you buy it, you have 7 days to decide if you want it, if not it goes back.

Imagine the savings to rolex with no shops, or just one shop in major cities worldwide, or at the big airports.

[tyler1980]

Originally Posted by timedate

online is only a matter of time, and why wouldnt it be?

you buy it, you have 7 days to decide if you want it, if not it goes back.

Imagine the savings to rolex with no shops, or just one shop in major cities worldwide, or at the big airports.

its not savings if you own and hold inventory. Currently Rolex wholesales to AD's and those watches are off their books immediately. Its safer because they dont have to figure out how to sell them one at a time. AD's take all that risk on. Every AD has watches that have been sitting multiple years. Even in London i had my wife try on a watch that had been discontinued for over 5 years yet the AD had it, sitting there.

I would gladly sell my product at wholesale prices immediately vs worrying about selling a million items one at a time

Because Rolex doesn't own or operate their boutiques unlike some other brands that leads me to believe they have zero interest in the retail business or dealing with end customers.

Had they been opening brand owned boutiques all this time i may have thought otherwise but they dont have to. Most people see a Rolex boutique and think they are buying a watch from Rolex directly, but they are not. They get all the benefit of that perception without any risk.

[The Argonaut]

Originally Posted by timedate

online is only a matter of time, and why wouldnt it be?

you buy it, you have 7 days to decide if you want it, if not it goes back.

Imagine the savings to rolex with no shops, or just one shop in major cities worldwide, or at the big airports.

Absolutely, apart from a few boutiques in key cities where customers can try on the watches and then order them. Rolex takes 100% of the profits. Any service work has to be sent away anyway.

[GeorgeA7]

Rolex is changing their image. There are way to many ADs and some, in the wrong locations. This was in part of expansion, getting people to buy the brand and expanding at a rapid rate. IMO Rolex is protecting their image and making their watches an item of exclusivity, and will only to continue to move in this direction. Why would Rolex want their watches to be available to just anyone? For profits? Nah, if everyone had a Rolex the exclusivity of owning something “special” will not be there. People want what they can’t have and this works from a marketing perspective and will keep demand high while protecting their image for the long term. Other brands have been known for producing large numbers of watches and getting them out to as many ADs as possible for the sake of driving short term profits. This has resulted in ADs sitting on large inventory, resulting in ADs selling watches at a discount (sometimes large) to off load product, which ultimately devalues the brand. I might sound rude for saying this, but as a buyer of a luxury item, I would prefer not to see Rolex watches being mass produced to the point that they are as common as seeing LV bag on every women walking around NYC. That is just my opinion, and I understand many on this forum are all about increasing production on certain SS models so that everyone can get one, but I can say that I appreciate having an item that someone can’t easily get, think it protects the brand from a exclusivity stand point and protect the consumer from a value perspective. Long story short - ADs will most likely continue to close down and Rolex watches will continue (SS at least) to be scarce.

[Greenwich Mean Time]

I've seen several AD's dropped over the years. IMO it's a constant fine tuning process. I have a feeling Rolex might like to open boutiques in key markets and move towards online sales supported by AD's in other markets. Whatever ends up happening, there's one thing for certain, it will be controversial in the WIS community.

[samson66]

Originally Posted by train-time

Absolutely correct! Don't forget the AD that was in California, MD -- also gone as well as Smythe (3 locations) in Baltimore, Annapolis and Ellicott City; J Brown in Baltimore. And up my way in the last few years the ADs in Hagerstown (R Bruce Carson); Hanover, PA (Garrick's); and York, PA (White's) all lost the brand. John White, a second generation jeweler actually closed his business after Rolex pulled out. I was also referred to a couple out of the area who no longer have the brand - Mann's in Ohio and Scherer's in Buffalo, NY (over 50 years with Rolex).

Good info. I do remember there being a dealer in Hagerstown. Didn't realize all those others has left. I could swear there was one in the Salisbury, MD area at one time as well - which would have been great for me. The only ones left in Maryland outside of the immediate Baltimore or Washington markets are Bel Air and Frederick I believe. Really a shame, but if no stock what's the point?

Ordering online is fine for purchasing, the problem comes in if you just need to get a link removed or other minor service, you have to drive an hour to get it done. And as another poster pointed out, this is going to hurt their walk-up business pretty bad if they disappear from malls.

[TswaneNguni]

If Rolex are moving over to flashy boutiques,in affluent areas and dropping family owned ADs which have supported them for decades and which I have supported for decades...Well,I have a problem with that .

Every watch in my collection is bought from a family owned dealership.I deal with the family,not salaried sales people who know nothing and act smart.

If Rolex change the business method to online and boutique only ,I will drop them.

...and guess what .Rolex watches will drop in value in the long run.

[dwjez14]

Rolex will remain a luxury brand no matter how many locations they have. I do not believe less ADs equals more mystique. It all come down to the price of the watch. They want to be more exclusive raise prices then less people buy

[RobearH]

I heard a rumor recently about a couple of mega dealers (one from Europe and one with a long time connection to Rolex) coming to the US market. The weeding out of these dealers is to make room.
But what do I know...just something I heard. R

[tyler1980]

the most obvious conclusion is Rolex is capitalizing on the abnormal high demand and using that to force AD's to upgrade stores, move locations, etc. Ones that dont play ball get cut.

None of that works when the market isn't what it is now so it just may be a side effect of Rolex using the market to their advantage as they have way more leverage.

[Brew]

Originally Posted by bobabreath

This puts a huge constraint on the buyer. Rolex's main client is the average guy walking in from the mall and buy a Datejust. Making someone drive more than 30 minutes to a dedicated boutique is going to seriously diminish sales traffic.

Some of us already drive much more than 30 mins to see the mostly empty cases. Luckily, I'm a DJ kinda guy.

[RichM]

Delaware here. I remember back in 2012 when the L&B store in Ocean City, Md stopped carrying the Rolex line.

Of the two in Delaware, I find the AR Morris store better to deal with than Sydney Thomas in the Christiana Mall. When I called ST, the first question out of their mouth was had I ever bought anything from them. I said no, I’ve just moved to Delaware and after a question like that, I’m not going to.

Called AR Morris, very nice on the phone, drove up and bought a Explorer1 from them. Even got a $200 discount. That was the first time I had dealt with them.

[pickettt]

Originally Posted by tyler1980

the most obvious conclusion is Rolex is capitalizing on the abnormal high demand and using that to force AD's to upgrade stores, move locations, etc. Ones that dont play ball get cut.

None of that works when the market isn't what it is now so it just may be a side effect of Rolex using the market to their advantage as they have way more leverage.

So the big question is, what will happen when this flow ebbs?

[tyler1980]

Originally Posted by pickettt

So the big question is, what will happen when this flow ebbs?

maybe they have been putting off making AD's upgrade stores until now. Most AD's i have been in over the past year have had some sort of Rolex remodel. I doubt they can be that demanding all the time and in a different and slower watch market.

[DenaliHD]

Originally Posted by iealdrich

Chow Sang Sang in Tai Po, Hong Kong. Gone

Which one? Thought they had a number of locations.