The collapse resulted in the value Sterling pound To create an environment of huge discounts on luxury goods, including expensive Rolex watches, up to 19% for American visitors.
It follows promised changes to tax policy by the new British government, including a plan to reintroduce value-added tax rebates on goods purchased by tourists, and the rebates could increase to as much as 32%, according to retail industry publication WatchPro, which It was reported by “Bloomberg”, and reviewed by “Al Arabiya.net”.
With sterling tumbling to record lows against the US dollar, the steel Rolex GMT-Master II, which retails for $11,289 in the US, can be bought for $9,293 in the UK in US dollars, at an 18% discount, according to WatchPro. The 41mm Datejust can be purchased in the UK for $7,088, 19% off compared to US retail.
It is for this reason that Rolex raised prices in the UK by an average of 5% during the month of September in the hope of avoiding “price arbitrage” or “arbitrage” by buyers to take advantage of weak sterling. However, the continued decline of the pound to levels not seen in decades made this adjustment almost irrelevant.
However, attractive price arbitrage is unlikely to be utilized on a large scale given that demand far outstrips supply. Rolex models are notoriously difficult to buy in retail from authorized dealers in the UK or elsewhere. Customers often put their names on waiting lists that can last for months or even years to receive their order.
A white gold Rolex Cosmograph Daytona retails for $32,635, including 7% sales tax, and can be purchased for $22,444 in the UK when the VAT rebate, which is a 31% discount, is included.
Rolex is the most famous Swiss luxury watch brand, with a market share of close to 29% and annual sales of about 8 billion Swiss francs ($8.2 billion).
The Geneva-based company produces about one million watches a year.