eathering the volatility in the world of watch retail, Arizona Fine Time distinguishes itself with a disposition more akin to Wall Street than Main Street. Its collection spreads like a diversified investment portfolio, astutely balancing blue-chip favourites with boutique-type treasures from Switzerland, Japan, and Germany to maximise yield and mitigate fluctuations.

“We examine the market almost like on a commodity basis,” reveals Mitchel Hirsh, owner of the multi-brand retailer. True to its name, he affirms, “We are playing in the ‘big market’, in the luxury space.” Besides its high-end, sub-$10,000 focus, the traditional establishment offers a wide array of timepieces, from the affordable G-Shock to the upscale Ateliers deMonaco, from Citizen to Claude Meylan and everything in between, catering to a broad spectrum of spending power.

For nearly three decades, Arizona Fine Time has thrived through epochal shifts in the industry. In more recent times, with watchmakers accelerating direct-to-consumer efforts, omnichannel becoming the norm, and retail consolidation intensifying, thereby weeding out weaker links in the process, this single store has not only endured but also excelled.

Mitchel Hirsh, founder and owner of Arizona Fine Time

Playing the long game

The family-owned enterprise has cultivated a stellar reputation from Scottsdale, Arizona, where cacti adorn the landscape, and sunsets radiate magical hues. Hirsh refers to the company as a “community organisation” and his employees as “associates”. He elaborates, “I don’t call them salespeople. They are partners in the business. And we have zero commission for anybody. Everyone is allowed to make their own decision, be it financial or distribution; I have complete confidence in each one of my teammates.”

This approach empowers the team to build lasting relationships with customers. It also helps that generations have passed through Arizona Fine Time’s doors, each warranting an informed conversation. While many clients are knowledgeable collectors, even those swearing by their smartwatches find themselves engaged and intrigued. Hirsh says shrewdly, “That’s actually one of the most telling signs. I already know there’s a potential sale.”

These individuals, typically professionals in their 20s and 30s with substantial income, are prime candidates for fine timepieces, especially when immediate sales are not the focus. Hirsh argues that they tend to see tech watches as tools and will eventually graduate to more sophisticated options. Thus, everyone who walks into the store, from farmers to surgeons, is greeted and treated with respect.

The sweet spot of luxury

Hirsh believes his clientele is also holding up, whereas the upper ends are losing steam. He notes, “Today, in the U.S., and I do feel Europe too, it is the $10,000-and-lower market doing really good business,” adding, “We’re working with our manufacturers and the designers of the manufacturers very, very closely. I see they’re driving things from above $10,000 luxury into more of our $6,000-8,000 price.”

Citing Rolex and Tudor, which have adeptly aligned to offer more affordable luxury, Hirsh comments, “Just look at the two brands we don’t carry. Rolex, in my opinion, is probably the best marketer of all. Five years ago, they wouldn’t have closely attached themselves to Tudor, their own company, for lower price points. So, they get it. And if they get it, everyone else should be looking in their direction.”

The watch retailer is housed in the same complex as several other businesses owned by the Hirsh family since 1960.

The universal principles of winning

Given its relationships with manufacturers, Arizona Fine Time often enjoys priority access to new releases to delight customers. “We have the pleasure and obligation from certain vendors to receive some of the European special products exclusively for this store,” Hirsh boasts. And the trick? “I come from a background of always paying your vendors first, before yourself. And that works in every business; it’s universal. When a manufacturer or distributor has absolutely no worries about you and your capital position, you will get the first crack at a lot of things.”

Hirsh credits much of his acumen and the self-funded store’s resilience to the sage advice of one very wise person. “My father always said, ‘When trading is fabulous, that’s the time to save. You have to build a war chest of capital to expand your business. Don’t spend all your money during downturns. They’ll be up,’” Hirsh recalls. “He was not a borrower, not a banker, but he was in business. And he really taught not only me but also my brother and sister, who are both very successful in different types of retail.”

Rooted in this wisdom, Hirsh remains unperturbed even as the market softens from historic highs. “I don’t see this as a change in sentiment or business – I think it’s normal. We’re going to do fine,” he assures, noting that the lockdown spending spree is adjusting, yet buying appetite remains robust. He further cautions, “Your business plan has to be based on pre-pandemic numbers and profits. If you base everything on what happened the last few years, I think you’re making an error.”

By the same token, the resurgence of American brands hasn’t made it easier for new independents or microbrands to make the cut in Arizona Fine Time’s portfolio. “They’ve gained a small market share, but it’s still a tough climb for most of them,” Hirsh explains, reflecting his commodity-based approach to stock picking. The same goes for brands under $2,000 superbly crafted all over the world, as they often struggle to scale up. “I’m a fan of small brands – they’re beautiful and worthy – and I buy some myself. But realistically, it’s a hard sell considering the ‘$500 elephant in the room’,” he says, referring to the industrial-scale watchmakers with heritage, advertising and distribution prowess.

Community as the lifeblood

This is not just Hirsh’s insight; his team’s intimate knowledge of the market helps shape its inventory. “Having a retail store, especially one that’s not in a mall, is like having a focus group every day. We know almost every single person, or we get to know them before they are twelve feet in the door. We ask more questions than your average store, in a very casual and nice way. We see exactly what’s going on. And we have daily meetings. The doors are always open in our offices, and we talk about it.”

This community-centric hub may just hold the secret to Arizona Fine Time’s longevity, and certainly Hirsh’s staying power. “I’m 68 years old. Every day I wake up looking forward to coming to my desk, here, my office with my staff,” he says. “In the afternoon, we have a meeting with about twenty friends and customers. We don’t even know who will show up, but it’s always enjoyable. I love being in the mix. So, you know, I’m fine. I’m happy.”