HitGoo grew to 500 discount stores — then shut 90% in two years

HitGoo (嗨特购) was a Chinese 'soft discount' retail chain that sold branded samples, near-expiry goods and surplus inventory at reduced prices. The model targeted young consumers in core commercial districts, offering big-brand products at steep discounts. By 2024, the chain had expanded to approximately 500 stores across China.

The growth masked a structural problem: the supply chain depended on tail-end and near-expiry inventory, which was inherently inconsistent. High rents in premium shopping areas required steady, predictable revenue that a surplus-goods model could not deliver. When brand owners tightened sample distribution and near-expiry supply dried up, HitGoo's shelves went empty.

The collapse accelerated through 2025–2026. By mid-July 2026, only 39 stores remained — a 90%+ reduction. In August 2025, the Beijing Xidan Joy City flagship (>1,000 sqm) and BHG Mall Changying store both closed. Shanghai's last store shut. Direct-operated stores were withdrawn entirely; remaining locations shifted to independent franchisee operation.

Members who had paid for benefits found them unredeemable as the centralised membership system disconnected from franchisee stores. The co-founder departed. The parent company, Beijing Youpin Kumai Technology, faced a sales contract dispute hearing in September 2026. Online channels stopped updating.

HitGoo scaled to 500 stores on unstable surplus inventory; when supply vanished, it shut 90% of stores, leaving members with unredeemable benefits.

HitGoo's soft-discount model depended on a supply of branded surplus and near-expiry goods that was inherently unstable — when brand owners tightened distribution, the shelves went empty.

Premium commercial-district rents required steady revenue that a surplus-goods model could not deliver — high fixed costs met low-margin, unpredictable inventory.

The chain expanded to 500 stores before validating whether the supply chain could sustain that scale — growth outran the model's operational limits.

When direct-operated stores were abandoned and remaining shops became independent franchisees, the centralised membership system collapsed, voiding prepaid benefits and destroying consumer trust.

A discount retailer that scales before its supply chain is reliable fills stores it cannot stock — and rents it cannot pay when the shelves go empty.

HitGoo's remaining 39 stores operated as independent franchises disconnected from the brand's membership system. The parent company faced court proceedings in September 2026. The case became a reference point for why 'soft discount' retail in China requires hard-discount supply chain discipline.