Achi news desk-
Family-owned Laings, which can trace its roots back to 1840, is undertaking a capital investment program expected to cost up to £20 million which will transform its bricks and mortar presence hometown, Glasgow and other trading locations across the UK.
At its heart is the multi-million pound restoration of the historic Rowan House on Buchanan Street in Glasgow, where phase one was recently completed with the opening of a new viewing service centre.
Here, highly trained watchmakers and technicians repair, maintain, refurbish and adjust timepieces made by famous brands such as Rolex, Patek Philippe, TAG Heuer, Longines and Omega.
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The service center is one element of a wider plan for the B-listed Rowan House, which Laings will make the centerpiece of its city center presence.
Laings has had offices on the second and third floors of the building for some time, but around two years ago it was announced that the company had signed a 15-year lease to occupy all five floors, following an extensive renovation project underway on now. .
At the heart of the revamped building will be a new showroom, which will also include a hospitality area on the fifth floor as well as the workshop, where shoppers can observe watchmakers and jewelers at work.
Outside Glasgow, the company moved to a larger site in Southampton in November, moving into a 10,000 sq ft unit more than three times the size of its previous site in the city.
The jeweller’s new store in the Hampshire city will, like its predecessor, have a Rolex area.
In Edinburgh the company will expand its presence on George Street next year after acquiring two properties next door to its current store. Its base in Cardiff was expanded before Covid hit.
Joe Walsh, who runs the jeweler with his wife Wendy Laing, told Herald Business HQ: “As we came out of Covid, we saw the opportunity on the high street. You saw that the high street was in decline, to be honest, but with that there is opportunity.
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“In all four of our cities we’re trying to make sure we’re in the right places.”
In Glasgow, Laings had initially considered taking the former Borders bookshop building on Buchanan Street as a base for his plans, but the layout of the property did not meet his requirements. It then turned its attention to expanding its presence at Rowan House, after fashion retailer Monsoon pulled out of the ground floor retail space.
Walsh noted that there were interesting architectural aspects to the nineteenth century building, which was once home to Rowans department store, famous in the 1960s for retailing school uniforms.
The B-listed building incorporates some Charles Rennie Mackintosh designs, including marble and front windows, which will be restored as part of the refurbishment. Walsh said it was a significant undertaking to bring the building up to the required standard.
“It has been unloved for many years,” he said. “We have to make sure it looks as good as it can be.
“The project has been lengthy. It is a kind of U-shaped building, and the central part of the U is in a bad state. In fact it hasn’t had any money spent on it in years.
“The offices were the first port of call. As you would expect from an old Victorian building, the floors are everywhere. They have the Victorian sash windows and because you can’t replace them with double glazing you have to put single sheet behind it. We need a complete tear down and start again, and that’s what we’re doing.”
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Walsh added: “[With] luxury retail these days, if you go down to Bond Street [in] London or New York, that’s the kind of level we have to get ourselves to. We sell Patek Philippe, Rolex – very high end pieces. The place has to look spectacular and that really comes across in the finish. Yes, there will be a lot of marble finish and wooden floorboards when you go in, but that’s how you also bring that to life with the soft furnishings, the smells, the atmosphere, everything you have to do
“A lot of work goes into it.”
Asked why the jeweler had the confidence to invest in its bricks and mortar retail when so much of the high street seems to be struggling, Walsh said: “As a family business that has been here for 180 years, you’ve seen the peaks and troughs of the market. the economic cycles. There was a big boom as we came out of Covid, which we didn’t expect, and I don’t think many people did.
“A lot of money was saved during the Covid period – numbers were quoting around £300 billion sitting in bank accounts that weren’t there before Covid. People started spending that and it really affected the business.
“If you look at Rolex and Patek watches, you used to have a number of watches for sale in the window.
“Now everything is just for show and that was driven on the back of that boom. Partly because of the money saved, but also because the world has become much bigger, dare I say, [led by] influencers, the bigger brands are getting stronger, and the smaller brands are certainly falling.
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“So, as Gen X comes through the early stages in life, they all want the brands and pieces that are in high demand, so there’s a commitment, really, from our partners with the likes of Rolex and Patek gives you that confidence. In the old days you would have stock in the window, now we have order books for two, three, four years, or even longer for pieces that are in high demand.
“Once you know you’re going to sell what’s coming in, as long as you have that commitment in the partnership and they’re not going to walk away , and that you see a commitment for the next five or 10 years, that gives you confidence to make the investment plans.
“In order to maintain those partnerships, you have to provide the right environment for them. The best brands in the world want to be in the best locations in the world in the best cities. It’s a mixture of things.”
Walsh acknowledged, however, that the Covid boom is now fading. He noted that Laings retails products across a range of price points and has been seeing “lower end” watch sales affected by the cost of living crisis and the recent rise in interest rates, which have not worked through the still mortgage market.
But he added that “as always there are successful people out there”, and high-end brands are in strong demand among them.
In its latest accounts, published in December, Laings managed to secure a 5% increase in turnover to £63.3m in the year to May, but pre-tax profits fell to £3.7m £5.45m.
The latest rise in turnover built on a 62.2% rise in the previous financial year to May 2022, when sales recovered strongly with the absence of pandemic-related lockdowns and pre-tax profits almost doubling to £5.45m 2.8 m.
Returning to Glasgow, Walsh acknowledged that there had been a major change across the retail landscape in recent years, with many retailers leaving the so-called Golden Z of Sauchiehall Street, Buchanan Street, and Argyle Street.
And he saw more change afoot with the intention of demolishing the Buchanan Galleries, which owner Land Securities intends to replace with a new mixed-use development spanning homes, offices, hospitality and some retail, and a fairly similar scheme on for St Enoch Centre. .
However, in the midst of that turmoil he has seen an opportunity for Laings.
“What that does is focus the retail area on Buchanan Street,” said Walsh, whose company also owns a TAG Heuer store on the street.
“And you see that especially from Frasers up to St Vincent Street. There is a real change in the retail environment now, there are many more branded stores.
“You have a Nike store, there are a number of watch shops that have opened, there is a Nespresso [outlet] and a few others. With the growth of brands, they are looking to make their own representation and make it strong. ”
