International News
Chow Sang Sang sees 15% decline in sales, 20% drop in profit
Chow Sang Sang’s- China’s third biggest jewelry retailer (by revenue) – 2024 financial results reveal a company grappling with significant headwinds in its core markets. The reported net loss of 74 stores out of 1,032, coupled with a 15% decline in sales and a 20% drop in profit, paints a picture of a retailer under considerable pressure.
Significant Closures: The closure of 122 stores, predominantly in Mainland China, highlights a strategic retreat in response to declining sales. This indicates a recognition of over-saturation or underperforming locations. Limited Expansion: Opening only 48 stores suggests a conservative approach, focusing on optimizing existing resources rather than aggressive expansion.Future Uncertainty: The company’s statement regarding “prudent… physical store network consolidation” implies further closures are possible, reflecting a pessimistic outlook on near-term market recovery.
Revenue Decline: The 15% drop in revenue (HKD 21.18bn) signifies a substantial reduction in consumer spending on jewelry .Profit Slump: The 20% decrease in profit (HKD 805.6m) underscores the impact of reduced sales and potentially heightened operational costs.Same-Store Sales Decline: The steep decline in same-store sales (38% in Mainland China and 24% in Hong Kong and Macau) indicates a systemic issue, not just localized problems. This suggests a broader consumer shift away from jewelry purchases.
Weak Demand: The report attributes the poor performance to “weak demand,” suggesting a shift in consumer preferences or reduced discretionary spending.Record-High Gold Prices: Elevated gold prices likely impacted affordability, particularly for gold jewelry, potentially driving consumers to alternative investments or postponing purchases.Economic Slowdown: The economic slowdown in China, Hong Kong, and Macau created a challenging retail environment, affecting consumer confidence and spending.Declining Diamond Demand: The report specifically mentions a drop in diamond demand as a primary driver of the same-store sales decline. This may indicate a shift in consumer preference away from diamonds, or a reduction in high value purchases in general.
Focus on Cost Optimization: The store closures indicate a focus on cost reduction and operational efficiency.Potential Product Diversification: The decline in diamond demand may necessitate a strategic shift towards other product categories or price points.
E-commerce and Online Strategies: In a challenging physical retail environment, strengthening online sales channels becomes crucial.Market Adaptability: The company’s ability to adapt to changing consumer preferences and economic conditions will be critical for its future performance.
International News
WGC Gold Demand Trends-Â Q1 2026: Bar and Coin Buying Drove Q1 DemandÂ
Global Demand Hit a New Record High Value Total Q1 Gold Demand, Including OTC, was 2% Higher y/y at 1,231t
Total Q1 gold demand, including OTC, was 2% higher y/y at 1,231t. This modest growth in volumes, combined with gold’s exceptional price rise, generated a 74% jump in the value of quarterly demand to a record US$193bn.Â
Bar and coin demand of 474t (+42%) was the second-highest quarter on record. Asian investors led the charge, hoovering up gold investment products.Â
Buying of gold-backed ETFs continued in Q1 (+62t), but at a lower rate than the very strong Q1’25 (+230t) following sizable outflows from US funds in March.
Amid record high gold prices, jewellery demand volumes remained under pressure (-23% y/y), while levels of spend again increased (+31%), signalling continued positive sentiment towards gold jewellery.
Central banks bought 244t (+3% y/y) of gold on a net basis in Q1 despite a visible uptick in selling activity during the quarter.
Demand for gold used in technology edged 1% higher to 82t, fuelled largely by the continued growth in AI infrastructure.
Highlights
- The LBMA (PM) gold price set a new quarterly average record of US$4,873/oz. The price hit a historical high of US$5,405/oz in January, followed by a notable correction. During Q1, the gold price returned 6%.
- The supply of gold increased in Q1 by 2% y/y to 1,231t. Modest growth in mine production, together with a 5% uptick in recycling, generated the increase.
- Investment demand now far exceeds fabrication. Weaker jewellery demand alongside growing investor interest in gold has changed the composition of demand in recent years.
Outlook
- Geopolitics remain front and centre in our outlook for gold demand in 2026. Our view remains that investment and central bank demand will be supported by ongoing geopolitical risk, with further investment impetus from elevated inflation and persistent high gold prices. Jewellery demand will remain under pressure for similar reasons, albeit that spending will likely remain resilient.Â
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