Rolex watches on sale in UK for US visitors as pound slumps

THE crash in the value of sterling has put Rolex and other luxury watches at discounts of as much as 19 per cent for US visitors lucky enough to get their hands on the coveted timepieces.

Promised policy changes by the new UK government including a plan to reintroduce Value Added Tax rebates on goods bought by tourists could even boost the discounts to as much as 32 per cent, according to watch retail industry publication WatchPro.

With the British pound retreating to record lows against the US dollar, a steel Rolex GMT-Master II that sells for US$11,289 in the US can be purchased for US$9,293 in the UK with US dollars, a discount of 18 per cent, according to WatchPro. A 41mm diameter Datejust model can be bought in the UK for US$7,088 in US dollars, a discount of 19 per cent compared to US retail.

Rolex raised UK prices by an average of about 5 per cent this month in hopes of heading off price arbitrage moves by buyers taking advantage of the weak pound. However, sterling’s continued decline to levels not seen in decades has made that adjustment almost irrelevant.

Still, the attractive price arbitrage is unlikely to be taken advantage of on a wide scale. With demand far outstripping supply, Rolex models are notoriously difficult to buy at retail from authorised dealers in the UK or elsewhere. Customers often put their names on lists and wait months or even years to get the call.

A Rolex Cosmograph Daytona in white gold that sells for US$32,635 in the US, including 7 per cent sales tax, could be purchased for US$22,444 in the UK in US dollars when including the VAT rebate, a 31 per cent discount, the publication reported.

Rolex is the most popular Swiss luxury watch brand, with a market share close to 29 per cent and annual sales of about 8 billion Swiss francs (S$11.7 billion). The Geneva-based company produces about 1 million watches a year. BLOOMBERG