Citizen, the global watch company that owns its namesake brand, as well as others including Bulova and Frederique Constant, has never had much of its own retail presence.
According to Jeffrey Cohen, president of Citizen Watch America, Citizen typically prefers to engage with the brick-and-mortar retail world through its network of hundreds of dealers, including both watch specialty shops and larger retailers and marketplaces like Amazon and Walmart. But this week, the company is changing that with the opening of its first flagship store in the U.S. Citizen owns a small number of flagship stores mostly in Asia, but this will be its first store in the states.
The 7,000-square-foot multi-brand store, which opened on December 6 on Fifth Avenue in Manhattan, will carry watches from all of Citizen’s brands, including exclusive products not available through the company’s dealer. That will range from accessible watches priced at a few hundred dollars to luxury timepieces selling for over $2,000. The bottom two floors will be showfloors and will also house customer service options like repairs and clienteling. The top floor will act as both a museum and an archive for unique watch models from Citizen’s past. It will also host events, including panels and parties.
According to Cohen, Citizen started thinking about opening a flagship store three years ago. The actual process of opening the store took a full year and made use of data including where Citizen customers shop and in what areas.
“We want this to be part of the whole purchase journey,” Cohen said. “We view the store as more of a marketing thing, more experiential. Our primary business is going to remain our dealer network, but this is icing on the cake.”
In addition to promoting the store across social channels, Cohen said Citizen will livestream shopping events streamed in the new store to encourage people to come in.
The store opening comes at a time when more watch brands are introducing marquee flagship stores to complement their network of dealers. A. Lange & Sohn, a high-end German watch brand, opened two flagship stores in New York and Paris in the last month. The flagships are the first wholly owned stores the brand has opened and, like Citizen, it plans to limit its own stores to a few flagships.
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Leaders behind retail businesses typically agree that owning even one physical touchpoint for products is smart, even for brands primarily focused on e-commerce or wholesale.
“A multi-channel approach to marketing and building a brand is essential,” said Carina Donoso, vp of retail experience and incubation at retail management company WS Development. “Including a physical retail establishment as a complement to any e-commerce presence ensures that customers can ultimately forge a palpable connection with the brand in the physical world. The tangible exploration and firsthand experience of products create an essential connection between customers and brands.”
Citizen Watch, which is based in Japan, has been growing successfully since the pandemic. Last year, it saw record growth in profitability, which was up 15%. It also has 40% more cash reserves this year compared to pre-pandemic levels, allowing it to further invest in things like flagship stores.
