Gold jewellery retailers in China face wave of closures as buyers shift to bullion
Gold jewellery stores across China are closing as high and volatile prices, along with a drop in marriages, reduce demand. Major retailers like Chow Tai Seng and Lao Feng Xiang have each shut hundreds of outlets. Consumers are increasingly buying gold bars and coins instead of jewellery.
Retail contraction spans major brands, with Chow Tai Seng cutting 473 stores, Lao Feng Xiang dropping 342 outlets in smaller cities, and China Gold removing 323 locations in the first half. Chow Tai Fook's mainland network shrank by 258 in the second quarter, largely due to franchise exits.
In Biyang county, a local teacher observed that over two-thirds of roughly twenty jewellery shops have closed. A brand manager noted that despite lower purchase volumes, owners still face fixed costs like rent and inventory, squeezing small independent retailers.
The closures could significantly affect employment in retail and local commercial ecosystems, particularly in lower-tier cities where these shops anchor shopping streets. As buyers pivot toward bullion for investment, traditional jewellers may face a permanent structural shift. Additionally, declining marriage rates could further erode demand for ceremonial pieces, potentially accelerating sector consolidation and leaving smaller towns with fewer retail options.