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Angus & Coote's shop window
Angus & Coote's shop window
Advertisement in Weekend Australian, April 24-25
Advertisement in Weekend Australian, April 24-25

 

Tag Heuer suffers heavy discounting

After deciding to dump Tag Heuer watches, Angus & Coote has moved to heavily discount remaining Tag stock.
In line with a recent decision to quit stocking Tag Heuer watches, prominent chain store Angus & Coote (A&C) has embarked on a national advertising campaign including prominent, color newspaper advertisements offering discounts on Tag watches.

The newspaper advertisements compliment A&C store signage at its Melbourne CBD flagship store that is offering customers “at least 20% off all Tag Heuer” in a “Tag sellout”.

The decision by A&C to offer heavy discounts on the leading Swiss brand came after LVMH general manager Philip Richards wrote to A&C last year advising that its account with Tag would be closed, thus ending a relationship dating back over a decade.

The LVMH strategy was designed to coincide with the opening of Tag’s own flagship store in Collins St, Melbourne and has directly affected three other prominent Melbourne retailers – The Hour Glass, Saleras Jewellmasters and Monards – all of whom have had their CBD accounts closed.

However, an angry backlash ensued when it was revealed that that another Melbourne CBD stockist, Watches of Switzerland (WOS), would continue as normal, despite being the outlet closest store to Tag’s new flagship store.

A&C has 128 stores in Australia and is part of the giant James Pascoe company of New Zealand, which owns Farmers, the department-store chain with 58 outlets.

In Australia, James Pascoe also owns Prouds (218 stores) and Goldmark (124 stores), as well as New Zealand’s Pascoes Jewellers (37 stores) and Stewart Dawsons (13 stores).

The decision by A&C to dump Tag ended a relationship dating back over a decade and fuelled the sale in which current season Tag stock, available in 12 A&C stores and seven Stewart Dawsons outlets, is being offered at 20-30 per cent off.

The A&C website is also promoting the Tag sellout with the message: “At least 20% off all Tag Heuer watches on display! So hurry, and don't miss out on this opportunity as the offer is valid for a strictly limited time, with limited stock availability and only at selected stores.”

A&C general manager Andrew Nock said the Tag sellout would take at least three months, given the current stock level. The national newspaper ad campaign is scheduled for a number of weeks.

“It’s sad that we have to take this action but, in the light of the major watch companies wanting to restrict distribution to consumers, we are forced to move the stock as soon as possible and a clearance sale is the only option,” Nock said.

Advertisement in Weekend Australian, April 24-25
Advertisement in Weekend Australian, April 24-25

The A&C flagship store is located on one of Melbourne’s most prominent corners and the clearance sale is hard to miss, taking two street frontages (see image gallery). 

In last week’s report, Nock said the decision to dump Tag was not one he took lightly: “We need to be able to work with our supplier partners to back our brand so that we back theirs. It needs to be a win-win and, in doing so, we must take into account our customers.

“It is not sensible for a retailer to have different product offerings in different stores. We need consistency, and not having Tag in our flagship store but available in our other, smaller stores is not something we view as sensible,” Nock added.

It is not known how long the A&C sellout will last nor how it will affect other Tag stockists, given that the ads have appeared in nationally The Australian

What is certain is that the ramifications of Tag’s strategy will be ongoing – Richards has subsequently notified Sydney retailers of similar plans ahead of the opening of a flagship store in Sydney CBD

Previous story: Tag Heuer closes accounts

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Trade Restriction
All I can say to the dumped retailers of prestige Swiss watches is welcome to the world of the professional watchmaker. The watch repair industry has been decimated by the Swiss watch company’s refusal to supply parts to service their watches. Under this policy the watch owner has no alternative but to return to the watch company for service or repair, at their price - often two to three times what their local watchmaker would charge. Restriction of trade - just ask a watchmaker - if you can find one!
posted by Irene Lippiatt on April 29, 2010 10:31


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Monday, 26 August, 2019 02:40pm
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