Want to buy a Rolex? Sterling plunge means UK discounts as high as 19 per cent – and even more if sales tax is rebated for visitors

The retreat of the pound against the US dollar makes it cheaper for visitors to buy their luxury watch in the UK – if they can find one
A steel Rolex GMT-Master II that sells for US$11,289 in the US can be bought for US$9,293 in the UK with US dollars

Rolex

Bloomberg

Published: 6:52pm, 29 Sep, 2022

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The crash in the value of the British pound 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 British government, including a plan to reintroduce Value Added Tax (VAT) rebates on goods bought in the United Kingdom by visitors, could boost the discounts to as much as 32 per cent, according to watch retail industry publication WatchPro. VAT is a national sales tax.

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 bought 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 the US retail price.

A steel Rolex GMT-Master II that sells for US$11,289 in the US can be bought for US$9,293 in the UK with US dollars, a discount of 18 per cent, according to WatchPro. Photo: Handout

Rolex raised UK prices by an average of about five per cent this month in hopes of heading off price arbitrage moves to take advantage of the weak pound. (Price arbitrage means buying an asset in one market and simultaneously selling it in another market for a small profit.)

However, sterling’s continued decline to levels not seen in decades has made that adjustment almost irrelevant.

A Rolex Cosmograph Daytona in white gold could be bought for a 31 per cent discount in the UK, including the VAT rebate. Photo: Handout

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 seven per cent sales tax, could be bought for US$22,444 in the UK in US dollars when including the VAT rebate, a 31 per cent discount, WatchPro 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 (US$8.2 billion). The Geneva-based company produces about 1 million watches a year.

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