Watches of Switzerland Group Plc said it plans to enter the European market for luxury timepieces through acquisitions and new boutiques after spending years focusing on boosting its foothold in the UK and the US.
Watches of Switzerland, the UK’s largest watch retailer, said the region also offers growth potential in travel retail and e-commerce as it unveiled a five-year plan for the period through fiscal 2026.
The plans are a signal that demand for luxury goods will remain strong as the sector recovers from the pandemic slump, even as international tourism has yet to return. The company will follow the strategy it used in the US, where it bought US retailers like Mayors, expanded in e-commerce and revamped brick-and-mortar stores.
The company said it expects the UK to make up as much as 48 percent of total revenue, similar to the US, while the European Union will represent between 5 percent and 8 percent.
Separately, the company said full-year sales rose 13 percent to £905.1 million ($1.25 billion) at constant currencies.
“The luxury watch market remains predominantly supply-driven with demand exceeding product availability for key brands and models,” chief executive Brian Duffy said in the statement.
By Corinne Gretler