In a strategic move that underscores the competition among Swiss watch brands, a Rolex SA subsidiary has acquired a prestigious building on Geneva’s upscale shopping hub. This property, situated on Rue du Rhone, is the current home of Omega’s flagship boutique, a significant player within the Swatch Group AG. This acquisition holds implications for the luxury watch market, real estate, and the competitive landscape.
The purchase, conducted by Marconi Investment SA for 120 million Swiss francs ($133 million), has shaken the status quo. Notably, the biggest Omega boutique in the Swiss city is one of the building’s tenants.
This real estate development introduces unique dynamics. Omega will now be paying rent to its foremost competitor, Rolex, each month. Moreover, Rolex will play a pivotal role in the building’s management and maintenance. Under specific conditions, the new owner can also terminate existing leases.
Rolex, the Swiss watch industry leader with sales of 9.3 billion Swiss francs, continues to make a statement both in horology and real estate. In contrast, Omega, the third-largest brand with sales of approximately 2.5 billion francs, remains a key contender in the luxury watch sector. Geneva’s Cartier, under Richemont’s umbrella, holds the second spot.
This deal reaffirms Rolex’s commitment to its heritage and hometown, Geneva. In parallel, Swatch Group, Rolex’s competitor, is also making significant investments in real estate. Recently, Swatch Group acquired a London property housing Harry Winston for around 90 million francs. It has further expanded its real estate portfolio on London’s Old Bond Street and iconic locations like the Champs-Elysées in Paris.
In 2014, Swatch Group acquired a retail space on Zurich’s Bahnhofstrasse, underscoring the high-end retail market’s ever-evolving nature. This location was previously home to the Bongenie Grieder luxury clothing store.
The future of luxury retail in Switzerland remains dynamic. Rolex, staying true to its legacy, announced its acquisition of Swiss luxury watch retailer Bucherer AG and its 100 boutiques. Bucherer also carries a selection of Swatch Group brands in its boutiques, including Longines, Tissot, and Omega.
