Plans for Small and Medium-sized Gold Shops to Cope With the Crisis of Store Closure

Abstract

In recent years, gold prices have experienced a sustained upward trend, which should have spurred vigorous growth in the retail gold industry. However, numerous jewelry stores have frequently closed their doors, presenting an anomalous phenomenon of "rising gold prices, store closures." This reality prompts us to consider: why does the increase in gold prices, instead of stimulating business, lead to operational difficulties for gold retailers? To address this question, it focus on the core issue of "Strategies employed by gold stores to cope with store closures amid rising gold prices," conducting an in-depth investigation. Through bilateral surveys involving 30 small- and medium-sized gold shop owners and 178 consumers, combined with case studies and visual data presentation, it aims to reconstruct the transmission pathway of "gold price increase changes in consumer demand increased operational pressure on gold stores store closures," and to propose practical survival and transformation strategies for small- and medium-sized gold retailers. Our research reveals that rising gold prices lead to decreased consumer demand, which in turn causes sustained declines in sales for small- and medium-sized gold shops and increases operational pressures. Under these circumstances, consumers prefer discount promotions, special offers, and excellent after-sales service.