Second-hand Rolex sales expected to soar as rich hit by spending squeeze

Rolex

The UK’s top Rolex dealer is expecting a boom in sales of second-hand luxury watches as wealthy shoppers’ spending is squeezed by inflation.

The upmarket watch retailer Watches of Switzerland said on Tuesday that it expects used timepieces to make up a significant chunk of its sales over the next five years, after sales of pre-owned watches rose 80pc in the last six months.

Its chief executive, Brian Duffy, said the company was “excited by the opportunity available to us in the pre-owned market”.

He added that sales of used Rolex watches through the Swiss watch brand’s “certified pre-owned” programme are expected to make up around 20pc of new Rolex sales in the US and 10pc in the UK by 2028.

It comes as Watches of Switzerland insisted demand for expensive watches is “stronger than ever” despite fears of a slowdown in the luxury goods market.

Sellers of luxury goods have faced the prospect of an economic downturn in China – a key market for expensive products – and high interest rates in the West that have caused even wealthy shoppers to tighten the purse strings as mortgage costs soar.

Alistair Hughes, the director of Savoir Beds, which sells handmade beds and mattresses costing thousands of pounds, told The Telegraph in September: “It’s those who are working as opposed to investing.

“Those people, the professionals, are affected, there’s no question about it, and they are a chunk of our business.”

Watches of Switzerland has also been scrambling to reassure investors after Rolex acquired Switzerland’s biggest Rolex retailer, Bucherer, sparking worries that Rolex may favour Bucherer over it when allocating stock.

Watches of Switzerland’s shares have fallen by almost 35pc over the last year.

The company said on Tuesday that revenues were flat over the six months to Oct 29 compared with the same period last year.

However, it said it wants to double its sales and profits by 2028 with a new “long range plan” that will see it expand its luxury jewellery business. Shares in Watches of Switzerland rose by more than 12pc as markets opened.

“We are now perfectly positioned to apply our market leading luxury watch model and expertise in elevating luxury brands to this growing category,” said Mr Duffy.

Porsche, too, has said the rising cost of borrowing and high prices have begun to affect even its wealthy customers.

The luxury carmaker’s finance chief, Lutz Meschke, said last month that drivers were more “reluctant” to buy its cars after “governments increased interest rates heavily”.

He said: “It is also hitting the luxury industry – you can follow it when it comes to share price development of all luxury retailers worldwide.”