Core Viewpoint - The discount retailer 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 [3][9]. Group 1: Store Closures and Franchise Changes - Multiple consumers have reported on social media that HotMaxx is closing stores in key urban areas such as Guangzhou, Changsha, Hangzhou, and Beijing [3]. - HotMaxx's official response states that the closure rate is below 5% for the year, attributing closures to normal business decisions by franchisees or direct stores, including issues related to rental costs and lease expirations [5][6]. - The company has confirmed a deliberate slowdown in franchise openings, focusing on core cities to strengthen brand presence and streamline supply chain management [5][6]. Group 2: Expansion and Market Context - In April 2023, HotMaxx had over 500 stores across 32 cities, with plans to add around 600 new stores that year. However, by mid-2024, the total number of stores reached 960, and projections for 2025 indicate a drastic reduction in new openings to just a few dozen [9]. - The discount retail sector, which saw rapid growth from 2020 to 2022, is now facing intense competition and market saturation, leading to a consolidation phase where many brands are being eliminated [9]. - The shift in the discount retail landscape is characterized by a transition from aggressive expansion to a focus on efficiency and supply chain management, marking a significant change in industry dynamics [9].