Cartier Confirms it is Closing Accounts

Cartier is closing accounts at a number of stores that sold its high-end watches, National Jeweler has learned, making it the second high-profile brand to cut retailers this month.

In a written statement released to National Jeweler, the company, which is part of Geneva-based luxury giant Richemont Group, stated the following: "Cartier continually re-evaluates its luxury watch distribution networks in order to have the most qualitative network with the goal of maximizing the Cartier client experience wherever Cartier products are sold. A reduction in Cartier's distribution was implemented in the United States effective April 1, 2010 in order to achieve Cartier's strategic objectives."

Though Cartier did not provide specifics on the number of accounts that are being closed, a retailer told National Jeweler that a person in a position to know informed his company that between 120 and 140 accounts were being closed.

In a letter sent to that same retailer, Cartier instructed the retailer that it was to begin disassociating itself from the brand.

"Pursuant to Section 11 of your Cartier Authorized Dealer Agreement, Cartier has elected not to renew the agreement for an additional term," the letter said.  "The agreement will terminate on March 31, 2010. Thereafter, you must cease to represent yourself as Cartier dealer and take all measures necessary to disassociate yourself from the Cartier name and trademarks, including but not limited to removal of all signs, inscriptions and other markings bearing any relation to Cartier."

Two weeks ago, branded diamond company Hearts on Fire made a similar move, announcing that it was closing 120 underperforming accounts in the United States.