The 1% and the Rise of Retail: A Surge in Luxury Watch Demand

In an era where digital innovation and geopolitical uncertainty reshape consumer landscapes, the luxury watch market is quietly experiencing a renaissance. Nowhere is this more evident than in the latest performance update from Watches of Switzerland Group.

The leading retailer’s first-half revenue soared to £845 million (approximately $1.11 billion), marking an 8% year-over-year increase. But beyond the numbers lies a deeper story—one that resonates with the behaviors and expectations of the 1%, a demographic redefining what it means to invest in time.

America: The New Epicenter of Horological Desire

While Watches of Switzerland operates across both the UK and US, it is the American market that has emerged as the undisputed growth engine. Revenues in the US climbed 15% year-over-year (20% at constant currency), reaching £409 million ($537 million). This sharp trajectory aligns with broader macroeconomic trends. North America continues to lead the global wealth rankings with over 142,990 Ultra High Net Worth Individuals, according to the Knight Frank 2025 Wealth Report.

This segment, which holds investable assets of $30 million or more, is increasingly viewing luxury watches not merely as adornments but as portable, appreciating assets. Brands like Rolex, Patek Philippe, and Audemars Piguet are no longer simply status symbols. They are trusted vehicles for capital preservation and cultural legacy.

Demand Continues to Outpace Supply

Even in a market known for exclusivity, demand for luxury watches is outstripping supply. Watches of Switzerland’s CEO Brian Duffy attributes the brand’s continued success to disciplined strategy and deep investment in the retail experience—both online and offline. The company operates 196 stores globally, including 84 monobrand boutiques through partnerships with Rolex, Omega, TAG Heuer, and others. It also maintains a growing digital presence, with e-commerce sales up 16% year-over-year.

Among the standout performers is the certified pre-owned (CPO) segment, particularly Rolex CPO models. As UHNWIs become more savvy and data-driven, pre-owned timepieces are gaining new respect. They are seen as smart additions to watch portfolios, offering both heritage and potential upside.

Branded Jewelry and Vertical Integration

Beyond luxury watches, jewelry sales rose 6% to £102 million ($134 million), with branded jewelry like Roberto Coin outperforming non-branded lines. Watches of Switzerland’s 2024 acquisition of Roberto Coin North America for $130 million has already yielded results. Sales via its Mayors brand doubled year-over-year thanks to enhanced in-store experiences.

This strategic vertical integration reflects a growing trend in the luxury space. Brands are taking ownership of their entire value chain to ensure consistency, storytelling, and bespoke service. For the 1%, experience is everything, and Watches of Switzerland is ensuring every touchpoint reflects their lifestyle.

Tariffs, Timing, and Resilience

One wildcard in the timekeeping narrative is trade regulation. A 39% tariff on Swiss imports to the US, announced in July 2025, has raised eyebrows across the industry. Yet despite the potential headwinds, consumer behavior remains stable. Watches of Switzerland is monitoring government negotiations closely, but to date, no major shifts in buying patterns have occurred—proof, perhaps, that time is still the most recession-resistant currency.

What It Means for the 1%

For the Ultra High Net Worth collector, the takeaway is clear: luxury watches remain a robust investment category. They can serve as part of a diversified portfolio, a family heirloom, or a discreet expression of identity. As the market becomes increasingly global, interconnected, and selective, access is everything.

Retailers like Watches of Switzerland are evolving not just as sellers, but as gatekeepers to a curated world of horological excellence. Their growth is not just a business story—it is a mirror to the shifting priorities of the world’s wealthiest individuals. In a world of volatility, few things remain timeless. The right watch, however, just might be one of them.