Crown control. (Photo credit: Expedia)
Someone inside Bucherer is speaking to Inside Paradeplatz, and it makes for fascinating reading. Inside Paradeplatz is a fairly large blog fed by business rumors from Switzerland’s finance world. It is run by former business reporter Lukas Hässig, whose prose is reminiscent of yellow journalism. And though Bucherer, the Rolex-owned retailer, is based in Lucerne rather than Zurich’s Paradeplatz, Mr. Hässig has written two stories about it just this past week.
In his latest story, published Friday and already viewed nearly 30,000 times, Mr. Hässig said Bucherer has cut 20 positions at its headquarters, “including senior executives on the sales front, in marketing, and in the design and social media departments,” he wrote, speculating Bucherer's CEO Guido Zumbühl might be next, according to another inside source.
While his sources are unnamed and reader’s caution is advised, it is not far-fetched to think Rolex’s integration of Bucherer brings its own challenges and has entered a more disciplined phase. The report said Rolex is frustrated with Bucherer’s difficulty upgrading its IT system, an investment expected to reach 15 million francs.
Rolex CEO Jean-Frédéric Dufour said at Dubai Watch Week last November he is not interested in buying another retailer, describing the experience as a learning curve for the brand. “We have no intention of growing further than that. It was an opportunity, and we had to do it. Now we are maybe understanding the retail business a little better, and that is a good thing,” he said.
Mr. Hässig in his report claims the layoffs are because of tepid sales at Bucherer. When the most successful luxury watch company in history acquires a retailer with more than 2,000 employees, cuts at the top may be because of brand control as much as sales. Rolex’s image today is its most valuable asset, and Bucherer’s reputation reflects on the watchmaker.
With more than 60 locations worldwide, Bucherer is now a public-facing extension of Rolex. Whether the cuts are driven by sales or strategy, we won’t know. But if Inside Paradeplatz's reports are accurate, Rolex is shaping Bucherer in its own image, which is ultimately a win for the client.