Watches of Switzerland Group PLC (LSE:WOSG), the UK’s largest Rolex dealer, will relocate its flagship Bond Street store to Old Bond Street in 2023, under plans for an eightfold increase of its retail presence.
The news was disclosed by chief executive officer Brian Duffy in the first-quarter earnings call on Tuesday August 16, as the FTSE 250-listed company reported a slowing in sales growth in the second quarter.
“This new flagship will reflect the importance of the London market and the special relevance of London to the history of Rolex,” said Duffy.
But it also underscores strong demand for the exclusive Swiss timepieces despite a deepeing cost-of-living crisis.
Good times for alternative investments
Duffy noted that interest lists continue to expand “despite well-publicised concerns about the macro environment,” likely due to high-net-worth-individuals seeking out alternative investment classes to store their cash while equities continue to fall out of favour.
Bloomberg noted that with demand outstripping supply, Rolexes on the secondary market continue to fetch valuations well above retail prices.
Fine wine and fine whisky have also proved to be popular alternative investment classes recently.
The Liv-ex 1000 index, a members-only fine wine investment vehicle, was up 3.61% in the second quarter of 2022, while a record £16mln sale of a barrel of rare whisky in July smashed the previous £1mln record only three months prior.