Story Highlight
– Traditional sub-£500 watch sales dramatically declined since 2015.
– Smartwatches replaced quartz models among millennial consumers.
– Fossil Group’s sales plunged from £152M to £31M.
– Peers Hardy’s recovery in sales reached £33.3M in 2025.
– Over 80% of UK department stores have closed.
Full Story
The landscape for traditional watches priced under £500 in the UK has experienced significant upheaval over recent years, particularly during the latter part of the 2010s.
As sales of fashion watches from well-known licensed brands, such as Michael Kors and Armani, began to decline sharply, smartwatches gained popularity, particularly among millennials. Devices from tech giants like Apple and Samsung started to replace conventional quartz timepieces, with the Apple Watch emerging as a prime example of this technological shift, offering numerous functionalities that outstripped those of traditional analogue watches.
Data reveals that retail income from quartz watches priced below £500 nose-dived from £569 million in 2025 to under £250 million just five years later. Fossil Group, which had seen soaring sales of Michael Kors watches during 2014 and 2015, notably with the Brandshaw model, faced the harshest consequences amid this market transformation. The enterprise’s UK sales plummeted from £152 million in 2014 to merely £31 million by 2025. An initiative aimed at launching a smartwatch line under its licensed fashion brands ultimately failed to attract sufficient interest and was abandoned in 2024.
Similarly, Peers Hardy, a UK-based company offering a comparable range of licensed fashion watches, encountered similar market challenges. Its sales trajectory mirrored that of Fossil Group, declining from a peak of £35 million in 2016 to £20 million in 2020. In response, Peers Hardy shifted its strategy towards fashion-oriented connected watches, targeting consumers who previously preferred traditional watches. By 2022, the company had introduced smartwatches under various brands, including Reflex Active, Radley, and Tikkers, which contributed to a turnaround following several challenging years within the sector.
The most recent financial results from Peers Hardy indicate a notable improvement, with total sales reaching £33.3 million in 2025, reflecting a 7% increase year-on-year. Impressively, their sales now outstrip those of Fossil Group, which reported £31.1 million during the same period, although Peers Hardy’s figure accounts for global sales. Breakdown by region reveals UK sales of £27 million, €4.7 million from Europe, and £1.7 million globally, predominantly from the US. Furthermore, the company’s operating profit surged by nearly 20% to £1.2 million.
“Turnover increased by £1.7 million, which reflects both the continued success of our smartwatch ranges and a strong performance by our quartz brands, in contrast to a declining quartz market,” Peers Hardy noted in the commentary accompanying its financial results. Their net assets also increased from £8 million to £8.7 million.
Looking towards the future, Peers Hardy expressed optimism largely due to the acquisition of the British brand Rotary, completed in May 2026, which is anticipated to “drive significant growth and value over the coming years,” according to company projections.
The retail environment for sub-£500 watches has faced profound changes over the last decade, marked notably by the decline of mass-market department stores. Iconic names such as BHS, Debenhams, and House of Fraser have either ceased trading entirely or drastically downsized. Debenhams, which once operated 124 stores, entered liquidation in 2020 and vanished from high streets by 2021. In parallel, BHS collapsed in 2016, and Beales shuttered its last store in 2025. House of Fraser has closed over 30 locations since its rescue by Frasers Group in 2018, while John Lewis has also significantly reduced its store presence in the wake of the pandemic. Analysts suggest that over 80% of traditional department stores in the UK have now closed as consumer preferences shift increasingly online, compelling watch manufacturers to adapt accordingly.
Peers Hardy proudly identifies itself as a leading supplier of own-label watches to numerous high-street retailers, featuring brands such as Reflex Active, Henry London, Radley, and Tikkers, among others.
