Jewellery is golden opportunity for Watches of Switzerland Group
Jewellery accounts for
just 13% of group sales but this is the company's most important opportunity
for growth
Despite its portfolio
housing several historic jewellery retail marques: Goldsmiths, Mappin &
Webb in the UK, plus Mayors and Betteridge in the United States, Watches of
Switzerland Group, as its name suggests, is still heavily weighted towards
prestige timepieces.
Its 2026 financial
report reveals luxury watches generate 82% of turnover, with jewellery
contributing 13%.
That 13% is far from
insignificant, given the business reported group sales of £1.83 billion, but it
points to a significant opportunity for growth at a time when supply of Rolex
watches is constrained and other Swiss watch brands are struggling to excite
customers.
Until relatively
recently, watches and jewellery were natural bedfellows for any prestige
jeweller.
This remains the case
for the likes of Pragnell, Berry’s, David M Robinson, Prestons, Laings and many
more multi-generational family firms.
Beaverbrooks, Ernest
Jones, H. Samuel, Fraser Hart, F. Hinds and others do it at a national level.
Mappin & Webb is
the equivalent retail marque in the UK for WoSG, but Goldsmiths, once
positioned as a national jeweller, slewed heavily towards watches, particularly
Rolex, over the past decade.
Watches of Switzerland
does what it says above the door.
WoSG Group CEO, Brian
Duffy, has used almost every financial reporting event to speak about the
rising importance of jewellery to the group, but progress on rebalancing sales
with a greater contribution from gold and diamonds has been slow.
In its 2020 financial
year, luxury jewellery represented 8.5% of group sales, now it is up to 13%,
which includes the north and central American business of Roberto Coin, which
it acquired in 2024 for $130 million.
Today we report on a
new retail concept in the United States, which demonstrates a change in
approach to jewellery.
In a suburb outside
Philadelphia, there is a new side-by-side, internally linked Watches of
Switzerland and Mayors store.
Watches of Switzerland
sells only watches, Mayors sells only fine jewellery. They have different
facias and their own entrances, but customers and, importantly, staff can move
freely between the two inside.
Sound familiar? Family
jewellers have been doing this for centuries.
This is a significant
development, which I believe will be rolled out across the United States and
the UK.
It will mean women,
treated as something of an afterthought by WoSG in pursuit of Swiss watch
sales, will become much more important to the business. And, yes, I know women
buy watches too!
I also believe this
concept will displace monobrand watch boutiques, many of which are failing
financially because they require full time dedicated staff, which all-too-often
sit in stores devoid of customers.
Multibrand jewellery
and watch showrooms give a broader range of clients myriad more reasons to
enter, browse and shop.
More women in a store,
is likely to lead not only to higher jewellery sales, but also improve the
ladies watch business, something that brands are desperate to achieve.
And gross margins on
gold and diamond sales are significantly higher than for most watch brands.
For now, this is a
“watch this space” forecast, but my prediction is a strong shift back towards
multibrand and multisector retail in the luxury watch and jewellery arena.
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