Even as gold prices hit new highs, profitability at China’s jewelry retailers is declining, forcing major brands to trim their store networks.

Chow Tai Seng Co. Ltd. reported that its retail footprint shrank to 4,675 stores as of Sept. 30, 2025, a net decline of 560 outlets from a year earlier. Franchise locations led the closures, falling by 380 units.

In the third quarter alone, the company shuttered 43 stores, with franchises accounting for more than 80% of the reductions, underscoring the pressure on traditional jewelry chains despite rising gold prices.