Is time up for luxurious watches? Thefts by ‘Rolex Rippers’ rocket by 60%

In an episode of HBO’s hit present Succession, one of many essential characters offers a Patek Philippe watch to his future father- in-law Logan Roy, the fearsome patriarch of the media empire.

‘It’s extremely correct; each time you take a look at it, it tells you the way wealthy you’re,’ Tom Wambsgans, performed by British actor Matthew Macfadyen, jokes.

The drawback is that criminals can inform too. 

Some sellers suspect that knife-wielding gangs – such because the ‘Rolex Rippers’ in London – finishing up a spate of robberies of pricy watches might have contributed to a slowdown in luxurious watch gross sales, and a collapse within the worth of second-hand watches on the gray market.

The Metropolitan Police reported a 60 per cent rise in watch thefts in London in 2022, with the capital accounting for extra half of the 12,000 reported within the UK that yr.

Thefts have fallen sharply since then after a collection of sting operations within the West End.

But for the fortunate few who’ve the cash, there’s little level forking out on a wildly costly ‘timepiece’ (‘Pateks’ vary from £14,000 for an entry degree mannequin to nicely over £1million) should you’re too afraid to point out it off in public.

Watches of Switzerland, the UK’s largest luxurious watch retailer, has seen shares droop by nearly half for the reason that flip of the yr, after it warned in January that it anticipated to generate 10 per cent much less from gross sales that it had beforehand forecast after a tough Christmas. 

Meanwhile, Bloomberg’s Subdial Watch Index – which tracks the 50 most traded fashions by worth on the second hand market – has dropped by 40 per cent for the reason that market peaked round two years in the past. 

Some have predictably dubbed it the ‘Rolex recession’.

‘People are positively extra aware of watch theft these days, particularly in main cities like London,’ mentioned Christy Davis, co-founder of London-based second hand watch buying and selling platform Subdial.

He mentioned the market remains to be rising, however the preferred and recognisable chrome steel luxurious sports activities watches, akin to Rolex Daytonas and GMTs, have misplaced a few of their attract as a result of they’re so simply focused by thieves.

The dramatic fall within the worth of second-hand luxurious watches has offered a jolt to a rising military of collectors and newbie buyers.

Before the onset of the ‘Rolex recession’ within the first half of 2022, the preferred fashions had been hovering in worth for years, beating returns accessible in stockmarkets. 

This fuelled fast progress within the second-hand market, which is value an estimated £2billion within the UK and £24billion worldwide. The reality this has coincided with the rise in sensible watches makes this all of the extra spectacular.

For apparent causes, luxurious items retailers are usually not too eager to broadcast the danger of their prospects being robbed.

But they’re conscious of the issue. Swiss watch-maker Audemars Piguet, greatest identified for its Royal Oak mannequin, broke the mould final yr when it launched a assure to exchange or reimburse prospects if their watch is stolen inside two years of them shopping for it.

But retailers like Watches of Switzerland preserve that ‘difficult macroeconomic circumstances’ – together with inflation and rates of interest – are accountable for dented gross sales, not the specter of crime. 

During the pandemic, rich prospects, unable to spend their cash in eating places and on holidays, splurged on luxurious watches. 

However, successive price hikes began to make potential watch patrons suppose twice about forking out as they apprehensive about recession.

But Davis mentioned there are indicators the market could also be beginning to stabilise as inflation falls, with buyers anticipating rate of interest cuts within the coming yr.

However, in frequent with different luxurious retailers together with Burberry and Mulberry, Watches of Switzerland has additionally been hit by Prime Minister Rishi Sunak’s determination to ditch the VAT refund for vacationers in 2021.

The retailer revealed in a buying and selling replace in January there had been ‘minimal return of vacationer spending as a result of lack of VAT-free buying’.

Chief government Brian Duffy alluded within the replace to the corporate’s post-Covid hangover, however made no point out of crime.

The retailer, which has 222 showrooms throughout the UK, Europe and the US, has confused that demand from prospects placing themselves on the ready checklist for standard manufacturers stays ‘robust’. 

All issues thought of, gross sales of luxurious watches have held up fairly nicely, down simply 1 per cent within the 13 weeks to January 28, in contrast with the identical interval final yr. While jewelry gross sales have been down 18 per cent.