The iconic Swiss watch brand Swatch is scaling back its operations in Israel, closing several mall locations and preparing to leave only one or two boutique-format stores in the country, supplemented by online activity. Recently, the company shut down its branches at the Kiryon Mall in Haifa and the Seven Stars Mall in Herzliya.
According to the local franchisee, the downsizing is part of a broader global strategy as the brand adjusts to shifts in the watch industry. Swatch, once a major worldwide trendsetter with its colorful plastic watches featuring Swiss mechanisms, evolved into a cultural phenomenon and expanded into other ventures — including a collaboration with Mercedes-Benz to produce the Smart city car.
But in recent years, Swatch has faced significant challenges. The rise of smartwatches, offering features such as heart-rate monitoring, step counting, and real-time notifications, has reshaped consumer expectations. Meanwhile, the mobile phone has become the primary device for checking the time, further eroding demand for traditional watches.
14.6% drop in Swatch revenue in 2024
These factors contributed to a 14.6% drop in Swatch Group’s global revenue in 2024, though it still totaled 6.7 billion Swiss francs. A key obstacle for the company has been the downturn in the Chinese market, historically one of its strongest growth engines.
In Israel, insiders in the mall industry report that the brand’s sales no longer justify the high operational costs of maintaining mall storefronts.
Impress, Swatch’s Israeli franchise holder, confirmed that branch closures are in line with instructions from the parent company. Despite the contraction, the company emphasized that Swatch continues to operate an active customer club in Israel.
