Chinese gold jewellery retailers close over two-thirds of their shops amid falling demand
Over 200 major Chinese jewellery chains have shut down hundreds of locations, while local shops in provinces like Henan report that more than two-thirds of competitors have failed.
Gold jewellery shops across China are closing as consumer demand shifts away from decorative items toward gold bars and coins. In Biyang, Henan province, the number of operating retailers dropped significantly, with many buyers switching to investment products. Major corporations confirmed similar closures: Chow Tai Seng reduced its store count by 473 nationwide. Lao Feng Xiang closed 342 outlets in third- and fourth-tier cities. China Gold shut down 323 locations in the first half of the year. Chow Tai Fook recorded a net loss of 258 mainland China stores in the second quarter, driven mainly by franchise contractions. Fred You, a business development manager at a national brand targeting lower-tier markets, noted that small shops face heavy pressure. Customers buy less gold by weight while owners still pay rent and maintain inventory.
