Rolex has increased prices in the euro zone for the second time this year.
In an e-mail statement sent to Bloomberg, Rolex confirmed: “There is an alignment of euro zone prices due to currency fluctuations”.
Rolex prices increased by an average of 5% in Europe from November 1.
This follows a hike in the UK in September — also the second price rise of the year — of around 7%.
Rolex, along with all other high volume luxury watch brands, has been attempting to maintain parity of prices between major markets, a task made particularly difficult this year because of the soaring value of the US dollar, and currencies pegged to the dollar like those of oil-rich Middle Eastern states.
An added complication is the UK government’s insistence that it will not allow immediate VAT rebates, which used to be the case for anybody shopping the UK from outside the European Union.
These VAT rebates are still offered in EU-states for anybody visiting from outside the trading block, which includes British shoppers making a short hop across the Channel.
British retailers, particularly at the luxury end of the market, have been lobbying for VAT rebates to be reinstated as they risk losing sales to near neighbours like France, Germany and Italy.
Even after euro zone price rise, Rolex watches are still more than 10% cheaper for UK shoppers travelling, for example, to buy in Paris.
It barely needs stating that the average person walking into an authorised dealer in Paris, without a rich purchase history with the store, is extremely unlikely to walk out with a Rolex.
But, if somebody is able to buy at retail, the savings for a UK shopper in the euro zone are substantial.
For example, a white gold Rolex Day-Date, priced at £31,450 in the UK would cost the equivalent of £27,047 at today’s exchange rate once sales tax had been reclaimed; a saving of £4,403.
Even a no date steel Rolex Submariner is more than £1,000 less on the Continent for UK shoppers.
Rolex may be cheaper to buy in France (assuming the unlikely situation that you’re able to call at an AD to buy one) after reclaiming the sales tax, but surely on returning to the UK the watch would be liable for VAT and Import Duty, thus increasing the cost by around 26% and making the price more expensive than buying in the UK (assuming the unlikely situation that your AD stocks one/will sell it to you)?