Core Insights - The well-known snack brand "Haoxianglai" has recently closed three stores in Jinan, indicating a significant slowdown in its expansion speed compared to previous years [2][3] - The parent company, Wancheng Group, reported that the number of store closures in the first half of 2025 has already exceeded the total for the entire previous year, reaching 259 closures [3] - The opening speed of new stores has drastically decreased, with only 1,468 new stores opened in the first half of 2025 compared to 9,776 in 2024 [3] Expansion and Closure Trends - The Jinan area has seen multiple "Haoxianglai" stores temporarily closed, with reasons including high rent and over-saturation of stores in the region [3][4] - The company has implemented relocation support policies for franchisees of loss-making stores, allowing them to receive renovation subsidies and choose new locations [4] Pricing Strategy and Market Competition - "Haoxianglai" employs a low-price strategy, offering products at prices lower than nearby convenience stores, which has been a key competitive advantage [6] - The low-price model relies on a simplified supply chain, reducing operational costs by eliminating intermediaries [6] - However, this strategy has led to increased competition and market homogenization, with many players adopting similar pricing and product offerings [6][8] Financial Performance and Market Dynamics - Despite revenue growth, companies like Three Squirrels have reported significant declines in net profit, indicating challenges in maintaining profitability under low-price strategies [7] - The rapid expansion of "Haoxianglai" has resulted in a significant number of stores, with over 15,000 locations established, contributing to a competitive landscape with over 45,000 snack retail stores in China by 2025 [8] Industry Outlook - The current trend of store closures and slowed expansion is viewed as a necessary adjustment for companies to align resources and management capabilities for sustainable growth [9] - The high asset-liability ratio of Wancheng Group, projected to reach 90.97%, raises concerns about financial stability and the need for diversified funding sources [9] - The market is expected to undergo a process of "survival of the fittest," suggesting that while the rapid growth phase may be over, the industry still holds potential for profitable players [9]