Chow Tai Fook’s Mainland China Store Count Falls to 4,807: What Prospective Franchise Partners Should Check

Chow Tai Fook continues to restructure its store network in mainland China. According to a Beijing Business Today report published on 27 October, the jeweller had 4,807 mainland retail stores as at 30 September 2026, down by 2,596 from 7,403 at the end of the 2024 financial year. For those considering franchise opportunities in China, the changes warrant attention not only because of the falling store count, but also because of shifts in regional coverage and how company-operated and franchised outlets can be identified.

Store numbers continue to fall

Citing financial reports, the article states that Chow Tai Fook’s mainland retail network has continued to shrink since it began restructuring its distribution network in the 2025 financial year. It recorded a net reduction of 896 outlets in the 2025 financial year and 969 in the 2026 financial year.

According to management guidance cited in the report, Chow Tai Fook plans a net reduction of 600–700 mainland stores in the 2027 financial year. This is an operating plan, not a tally of closures already completed. Financial-year figures should not be treated as equivalent to calendar-year figures either.

A net reduction in outlets is also not the same as the total number of stores closed. When assessing changes to the brand’s network, openings, closures and net movements need to be considered separately. A decline in the overall store count alone cannot establish how many franchisees have exited.

Restructuring focuses on third- and fourth-tier cities

In the 2026 financial year, Chow Tai Fook closed 241 mainland stores in third-tier cities and 283 in fourth-tier cities and other locations. Together, these 524 closures accounted for nearly half of mainland store closures during the period. It also closed 132 stores in first-tier cities and 417 in second-tier cities.

The report notes that Chow Tai Fook previously relied on a dense franchise network to expand in lower-tier markets. While reducing parts of that network, it is now directing resources towards premium showcase stores and seeking to improve its profit mix through higher-margin, fixed-price jewellery.

However, these closure figures do not distinguish between company-operated and franchised stores. The 524 closures therefore cannot all be treated as franchise closures, nor do they establish the profitability of franchised outlets in any particular region. Whether premium showcase stores can make up for the loss of market coverage and revenue following the network’s contraction remains to be seen.

Store searches no longer distinguish operating models

When Beijing Business Today reporters visited several Chow Tai Fook stores in Beijing on 27 October, some staff said that outlets in and around the city’s main shopping districts were now predominantly company-operated. These are local observations and should not be extrapolated to the national network.

Of greater relevance to prospective franchise partners is the report’s account of comments from Chow Tai Fook’s official customer service team: the brand currently does not publicly distinguish between company-operated and franchised stores, and its internal store search system does not specifically label the two types.

This approach to store searches does not mean that all outlets have become company-operated, nor does it establish that the brand has stopped offering franchise partnerships. Consumers and prospective partners still need to verify the actual business operating an outlet, rather than relying solely on its signage or the brand’s store search results.

Assess partnerships at individual store level

Beijing Business Today sent Chow Tai Fook questions about the criteria for the latest round of store closures and its long-term network plans. At the time of publication, the company said it had no further information to disclose publicly. The restructuring therefore should not be interpreted as a franchise exit programme governed by clearly published rules.

For anyone assessing a potential partnership, the size of the brand’s network is only background context. More useful checks include who will sign the contract, who will operate the store, whether further expansion is planned in the area, and how responsibility for subsequent relocation, closure and stock handling will be allocated.

Practical tip: verify the contracting entity and regional plans before modelling an individual store’s investment requirements and cash flow. Neither the brand’s historical peak store count nor its consistent branding is a substitute for reviewing the partnership terms.