Rolex has introduced a global price increase that came into effect on Monday.
In the UK retailers have reported that the average price increase is equivalent to about 7%, and it has been suggested that the UK hike is less than that implemented in mainland Europe where it is expected to sit at about 10%.
Karl Massey, managing director of Prestons, which has just opened the UK’s first standalone Rolex boutique outside of London in Leeds this month, said that despite the price hike he believes that the UK is still a competitive market to sell Rolex watches in.
Massey added: "In the last few years Rolex along with many other Swiss watch brands have increased their prices due to currency and other factors and our sales continue to increase compared to other markets the UK is still very competitive and we believe that this year will give us further growth."
Southwest retailer Michael Spiers has already passed on the price increase to consumers. Watch department manager Oli Peppiatt said: “Our prices have been put up already, but we have no direct competition in the area, but you may find that others hang on until the last minute. I welcome price increases as they reinforce the idea of a watch as an investment and boost the second hand market.”
Retailers have also reported that Rolex is preparing to reduce retail margins by 1.9% next month.
Rolex confirmed that there has been a global price increase but declined to comment further on the issue.