“From 500 stores to 39: Behind the closure trend of HiTao, discount retail is reaching a watershed in its model”
The number of HiTuGou stores has shrunk from nearly 500 to 39, a reduction of nearly 90% within two years. The brand was established in 2021 and expanded rapidly through soft discount models using leftover products from major brands. It received multiple rounds of financing and planned to increase the number of stores to 3,000. Since the end of 2025, issues such as unpaid payments and declining delivery rates have caused dissatisfaction among franchisees. As a result, the parent company Beijing Youpin Kuima Technology has been involved in several legal disputes. Analysts point out that HiTuGou relies on brand inventory benefits, but the continuous decline in upstream supply sources and lack of control over the supply chain have led to difficulties in repeat purchases and increased operational risks. This decline marks a period of differentiation in discount retail, with soft discounts facing shrinking market space, while hard discounts are rapidly developing through building their own supply chains and creating proprietary brands.