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Core Viewpoint - The discount retail chain HotMaxx is reportedly closing stores in several major cities and has halted new franchise agreements in some areas, indicating a significant slowdown in its expansion plans for 2025 [1][3][10]. Group 1: Store Closures and Franchise Changes - Consumers have reported that HotMaxx is closing stores in key urban areas such as Guangzhou, Changsha, Hangzhou, and Beijing, with a notable reduction in new store openings planned for 2025, dropping to a scale of only a few dozen [3][10]. - HotMaxx has acknowledged that the closure of some stores is a normal operational choice by franchisees or direct stores, with an overall annual closure rate not exceeding 5% [6]. - The company has stated that the slowdown in new franchise agreements is a strategic decision to focus on core cities, rather than a complete halt, with current franchise opportunities limited to seven cities including Shanghai, Nanjing, and Guangzhou [6][10]. Group 2: Market Context and Industry Trends - The discount retail sector, which saw rapid growth from 2020 to 2022 with brands like HotMaxx, has entered a phase of consolidation due to increased competition and market saturation, leading to the exit of several brands [10]. - The shift in the discount retail landscape is characterized by a transition from aggressive expansion to a focus on efficiency and supply chain management, indicating a maturation of the market [10]. - HotMaxx, which initially gained popularity through low-priced products, is now facing challenges that reflect broader industry trends towards more sustainable growth practices [11].