"585 GOLDEN" COMPANY CLOSES ITS STORES DUE TO THE BUSINESS PROBLEMS

Recently, it became known that “585 Golden” jewelry store chain intends to cut its costs due to the significant decline in demand for products.

Problems in the jewelry industry began after the dollar rise, as the cost of precious stones and metals, from which jewelry is made, is calculated in foreign currency, and the size of this very currency has significantly changed against the ruble in March 2020.

The change in the currency rate increased the cost of production and the final price of jewelry by 35%.

But the trouble does not come alone, and along with the rise in the cost of production, the demand for the products has fallen due to the coronavirus. The sales fell to 90% in some store chains in March, which is understandable – no one thinks about luxury goods and idle walks, the time of quarantine has come.

When it comes to "585 Golden"  jewelry chain, the management of it made a difficult decision to close part of the retail stores in the regions, to suspend the signing of new lease agreements and to participate in projects of commercial real estate at the stage of construction. This store chain was not the only one that faced with difficulties in today's realities, and it is possible that the jewelry business will soon ask for help of the Government of the Russian Federation, which is literally drowning in such requests.