Watchfinder enters US retail with SoHo flagship; Richemont eyes CPO reset
Bottom Line Impact
If SoHo achieves target turns and margins, Richemont can stabilize Watchfinder, add US$15–25m GMV per mature store with mid-single-digit EBITDA, strengthen US market presence in CPO, and enhance brand equity through trusted certification and service-backed resale.
Key Facts
5- First dedicated US boutique on Spring Street, SoHo; Watchfinder arrived in the US in 2020 and now operates 17 showrooms across 8 markets
- Sales fell 19.3% in FY22/23 (Apr 2022–Mar 2023); swung from £2m profit in FY22/23 to £12m loss in FY23/24
- Acquired by Richemont in 2018; the SoHo opening is its first physical US point of sale for buy-sell-trade with on-site experts
- Secondary watch prices corrected roughly 20–30% from 2022 peaks (market-wide), improving buyer value but pressuring resale margins
- We estimate a SoHo CPO boutique can reach US$15–25m GMV run-rate by year 2 at 18–22% gross margin, with 18–24 month payback if inventory turns exceed 4x
Time Horizons
Executive Summary
Watchfinder & Co.'s first US boutique in New York's SoHo marks Richemont's push to re-accelerate certified pre-owned (CPO) growth in the world's largest luxury market. Executed well, the store can convert US demand into profitable, omnichannel trade-ins and sales, reversing recent losses and strengthening Richemont's watches ecosystem.
Actionable Insights
Immediate Actions (Next 30-90 days)
Launch a 90-day NYC sourcing offensive (weekly buyback events, concierge home appointments, partnerships with local collectors) to secure 2,000+ high-velocity SKUs by holiday peak.
Rationale: Speed to curated inventory drives conversion and sets pricing power; sourcing depth reduces dependence on volatile marketplace supply.
Role affected:CEO (Watchfinder)
Urgency level:immediate
Deploy a SoHo hyperlocal marketing mix (creator partnerships, watch-club alliances, geo-targeted search) with a 60% budget weight to trade-in acquisition and in-store appointment bookings.
Rationale: Trade-in flow is the leading indicator of sell-through and margin; in-person appointments convert at 2–3x online-only traffic.
Role affected:CMO (Watchfinder)
Urgency level:immediate
Short-term Actions (6-12 months)
Set store-level unit economics guardrails (gross margin floor 19%, inventory turns 4x, blended CAC payback <6 months) and tie expansion to threshold compliance for two consecutive quarters.
Rationale: Disciplined capital allocation de-risks US rollout and accelerates path back to profitability after FY23/24 loss.
Role affected:CFO (Richemont)
Urgency level:short-term
Strategic Actions
Enable unified CPO-new journey (store inventory online in real time, trade-in valuations pre-qualified online, cross-store pickup) and integrate with Richemont Maisons' CRM within 6 months.
Rationale: Omnichannel and data unification lift lifetime value and enable upgrade pathways from pre-owned to new within Richemont's portfolio.
Role affected:Chief Digital Officer (Richemont)
Urgency level:strategic
Risks & Opportunities
Primary Risks
- Inventory valuation errors amid volatile CPO pricing compress gross margin below 18%
- Insufficient qualified watchmaker capacity extends intake-to-shelf times beyond 14 days, reducing turns
- Competitive response from Rolex CPO ADs and WatchBox intensifies sourcing costs and CAC
Primary Opportunities
- Attach Richemont service warranties to differentiate trust and justify 2–3 pp margin uplift
- Trade-in partnerships with Richemont Maisons generate cross-brand upgrade cycles and lower CAC by 20–30%
- Data-driven dynamic pricing improves spread capture by 100–150 bps on top SKUs