It turns out high demand for Rolex watches can also mean the death knell for authorized dealers, as Rolex restructures its network to better manage inventory.
More and more reports are coming in from jewelers around the world who said Rolex had cancelled their agreement even though they didn’t break any rules.
In the latest example, a Stuttgart-based jeweler, who had been in business for 50 years, said losing the Rolex authorization to carry the brand was “the final decision” for him to close his doors, according to an article published Sunday in a prominent German daily, the Frankfurter Allgemeine.
Coronet reached out to Rolex but the brand said it had no comment.
Still, by paring down the number of dealers in its network, Rolex can manage the scarcity more effectively and thus its reputation, as clients grow frustrated when facing empty display cases at too many locations. Fewer but better-stocked Rolex boutiques could help the brand provide a better overall shopping experience.