AdvertisementChina consumptionEconomyChina Economy

Jewellery shops shut down as Chinese consumers switch focus to gold bars and coins

2-MIN READ2-MIN Listen

He Huifengin GuangdongPublished: 1:44pm, 10 Sep 2026

Most of the gold jewellery shops that once lined the main commercial street in Biyang, Henan province, have closed as gold prices hover at high but volatile levels and a decline in marriages dents demand.

“Gold jewellery used to be very popular in our small county,” said 25-year-old kindergarten teacher Yu Qian, who described herself as a frequent buyer of gold jewellery. “There used to be more than 20 gold shops operating here, but I’d estimate that over two-thirds of them have already closed down.”

Jewellery retailers across China have been closing stores as demand weakens.

In recent corporate disclosures, Chow Tai Seng reported a net reduction of 473 stores across the country, while Lao Feng Xiang said it had closed 342 outlets in third- and fourth-tier cities. China Gold cut 323 locations in the first half, and Chow Tai Fook logged a net loss of 258 mainland China stores in the second quarter of the year, primarily driven by franchise contraction.

Fred You, a Guangdong-based business development manager at a national jewellery brand targeting lower-tier markets, said small jewellery shops were now under heavy pressure.

Consumers were buying less gold by weight, while shop owners still had to carry inventory, pay rent and bear other operating costs, he said.

AdvertisementSelect VoiceSelect Speed1xAI-generated voice