In a recent development, a subsidiary of Rolex, known as Marconi Investment SA, has successfully acquired a building on Geneva’s most prestigious shopping street. This property currently houses the flagship boutique of Rolex’s competitor, Omega.
Strategic Real Estate Move in Swiss Watch Brand Rivalry
The transaction, valued at 120 million Swiss francs (RM619.78 million), is a testament to the ongoing competition among top Swiss watch brands for prime real estate. Tribune de Geneve, the local newspaper, reported that the building on Rue du Rhone includes Omega’s largest boutique in the city.
The acquisition highlights the fierce competition among these brands, not only for customers but also for securing the best locations for their stores. With this purchase, Omega will now be paying rent to its main competitor, Rolex, each month. Additionally, Rolex will have a say in the maintenance and operations of the building. According to Tribune de Geneve, new owners can terminate existing leases more easily under certain conditions.
Both Rolex and Swatch Group, the parent company of Omega, declined to provide comments on the matter. Rolex, considered the largest Swiss brand, boasts sales of 9.3 billion Swiss francs, while Omega holds the third position with sales of around 2.5 billion francs. The second-largest watch brand is Cartier, owned by Geneva-based Richemont.
Rolex, under the control of the foundation named after its founder Hans Wilsdorf, holds significant real estate in its hometown of Geneva. Swatch Group is also a notable real estate investor, recently acquiring a building in London’s New Bond Street for about 90 million francs to house its jewelry brand, Harry Winston.
Rolex and Swatch Group’s Ongoing Investments in Real Estate
Swatch Group has made other real estate investments, including buildings on London’s Old Bond Street and a store on the Champs-Elysées in Paris, each valued at around 120 million francs. In 2014, Swatch acquired a retail location on Bahnhofstrasse in Zurich from Credit Suisse, housing the Bongenie Grieder luxury clothing store.
Bongenie Grieder, controlled by the family of Rolex chairman Nicolas Brunschwig, plans to relocate its flagship Zurich store to a new location in 2024. Additionally, Rolex announced in August its acquisition of Swiss luxury watch retailer Bucherer AG and its 100 global boutiques, where several Swatch Group brands are also sold.
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