Swiss luxury watch brand Jaeger-LeCoultre will close its boutique at The Hyundai Seoul by the end of March, as the store’s main customers, mainly millennials and Gen Z (born between the 1980s and 2000s), are spending less on high-end goods due to rising prices.
Luxury brands, including watchmakers, have raised prices in recent years to maintain profits. However, experts expect a slowdown in growth in the coming years due to the economic downturn.
According to industry sources on Feb. 5, Jaeger-LeCoultre will operate its boutique at The Hyundai Seoul until March 31. However, after-sales services will still be available at the brand’s six other boutiques in Seoul. A Hyundai Department Store staffer said, ““The closure is being discussed by mutual agreement as part of our annual merchandising updates.”
The Hyundai Seoul, where over 50% of customers belong to the MZ generation, primarily offers brands favored by shoppers in their 20s and 30s. Ultra-luxury names like Hermès and Chanel are scarce, and Louis Vuitton only opened a store there in 2023, two years after the mall’s launch. Instead, the mall features mid-range luxury brands such as Gucci, Balenciaga, and Tod’s. Even Rolex, often seen as an entry-level luxury watch, does not have a presence there. Industry experts suggest that The Hyundai Seoul’s customer profile does not fully align with Jaeger-LeCoultre’s target market.
The overall demand for high-end watches has also declined in recent months. Last August, Drawer Circle, a dealer handling Jaeger-LeCoultre and other luxury watch brands, withdrew from Shinsegae Department Store’s flagship location.
According to the WatchCharts Overall Market Index, which tracks 60 luxury watch brands, including Rolex, Patek Philippe, and Audemars Piguet, total luxury watch sales fell by 5.1% last year.
Jaeger-LeCoultre is owned by Richemont, one of the luxury giants alongside LVMH and Kering. While LVMH and Kering focus on fashion and leather goods, Richemont specializes in high-end jewelry and watches, owning brands like Cartier, Van Cleef & Arpels, Vacheron Constantin, A. Lange & Söhne, and IWC.
