Swiss watch brand Panerai is planning a major restructuring of its retail network in China amid weakening demand in the local luxury watch market. According to industry sources, the brand is set to begin closing underperforming stores and streamlining its presence in TimeVallée multi-brand boutiques, with two waves of closures expected by the end of May. In Shanghai, Panerai is likely to retain only its flagship store at Grand Gateway 66, shutting down other boutiques in the city. The move comes as the brand faces challenges from over-expansion into lower-tier markets, underwhelming brand positioning, and a shrinking market share — from 2% in 2022 to 1.2% in 2024 — amid a wider decline in Swiss watch exports to China.