We discuss the grey market once in a while here on the site. We recently illustrated what the watch grey market really is right here , but this latest news surprised even us.
In a recent bankruptcy filing in New York, the New Dover Group explicitly states that its source (Vertime an affiliate of the Timex group) violated their distributor agreement. In addition, and this is the kicker they also claim that Vertime undercut them – their very own dealers – by “dumping” 35,000 watches at heavily discounted prices, in unauthorized sales to retailers such as Costco and online sellers.
Yes, in case you didn’t know it yet, Costco is one of the more famous grey market dealers in the present landscape.
These things aren’t often said out in the open and shows that the grey market affects (positive or negative) all parties involved in the supply chain.