Watchmakers stockpile inventory ahead of Brexit

One country stands out among first-quarter figures for Swiss watch exports, and that country is the United Kingdom The United Kingdom now ranks as the fourth largest market for Swiss watch exports after the United States, Hong Kong and China Watchmakers are among those making plans in the event of a disorderly departure, as Jean-Daniel Pasche, president of the Federation of the Swiss Watch Industry, confirmed at Baselworld: "Brands are seeking to guard against problems that may emerge, including new customs procedures or import backlogs," he said.

Hublot, for one, has chosen to boost inventory rather than take the risk of watches being held up at the border after the UK's exit, acknowledging London as a "Locomotive" for business, in the words of CEO Ricardo Guadalupe Almost immediately, the pound fell by some 15% against the main currencies and foreign tourists took advantage of favourable exchange rates to snap up Swiss watches - a behaviour reflected in figures for that year What will happen now that the UK has until October 31st to put an end to Brexit brinkmanship, bearing in mind that sales to end customers haven't increased in line with exports? Figures from retail analyst GfK show that after gaining 7% in January then 5% in February, retail sales of watches in the UK were down 15% in value for March.

As inventory builds up at British retailers, it's worth remembering the situation in Hong Kong only a few years ago when the market sat on piles of unsold watches, leading first to a sharp drop in exports then to a wave of inventory buyback. . Source