Xiaomi is reportedly preparing to close more than 1,000 underperforming Xiaomi Home stores in mainland China during 2026. The reported plan targets older outlets that are both inefficient and loss-making; it is not a confirmed tally of completed closures, nor evidence that Xiaomi is ending physical retail worldwide.
What is reported—and what is confirmed
Reports published in December 2025 say Xiaomi China circulated an internal notice to dealer partners outlining a plan to rationalize its mainland China store network. The notice was attributed to Wang Xiaoyan, Xiaomi Group senior vice president and president of Xiaomi China. The reported target is more than 1,000 Xiaomi Home stores during 2026. Gizmochina reported the plan on December 10, 2025, and TechNews reported on the dealer policy on December 21, 2025.
This remains a reported plan based on coverage of an internal communication. The available reporting does not establish that Xiaomi publicly confirmed a final number, that more than 1,000 stores have already shut, or which specific locations are affected. The company’s investor-relations site and its annual and interim reports archive provide official company materials, but the reported closure count is not confirmed there in the information cited for this story.
Which stores could be affected?
According to the reported notice, Xiaomi would evaluate stores opened before January 1, 2025. The reported criteria are conjunctive: a store must be both low-efficiency and loss-making to qualify for closure. That is more specific than a general shutdown of weak-selling locations.
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The reports do not disclose Xiaomi’s thresholds for efficiency or losses. They provide no precise sales, margin, footfall, inventory-turnover, or monthly-loss test, so it is not possible to determine from public reporting whether a particular shop meets the standard.
What support and consequences are reported for dealers?
The reported plan says Xiaomi would absorb about RMB27.26 million in one-time adjustment costs to assist with the shutdown process. It also cites a projected reduction of up to RMB72.46 million in dealers’ combined annual losses. Those are reported figures from the internal plan, not independently audited savings or a guarantee that dealers will realize that amount. Gizmochina’s account includes both estimates.
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TechNews says Xiaomi would stop assigning company-provided store managers to dealers that continued to operate stores designated for closure beginning January 1, 2026. That describes a reported withdrawal of operational support; it does not by itself prove that Xiaomi legally forced every dealer to close immediately. The reports do not establish whether a dealer could instead relocate, rebrand, convert the shop to another retail format, or continue independently under a different agreement.
Why prune the network after expanding it?
The reported move points to a shift from rapid store-count growth toward retail productivity and dealer profitability. Xiaomi’s own materials show the scale of the prior expansion: it reported nearly 15,000 offline stores in mainland China as of December 31, 2024, then nearly 16,000 in the first quarter of 2025 after adding more than 1,000 stores quarter over quarter. Its Q1 materials also described a target of approximately 20,000 stores by the end of 2025. These are historical company figures and a historical target, not a current store count or proof that the target was met. See Xiaomi’s 2024 annual-results announcement and Q1 2025 results material.
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A large network can improve access and product visibility, but each location also brings rent, staffing, inventory, and dealer-support costs. A store with inadequate sales or margins can weaken dealer economics even if it contributes to local coverage. Closing or consolidating selected sites could concentrate inventory and staff at stronger locations and allow the company to focus on larger-format stores and its broader Human × Car × Home ecosystem. The available reporting does not show that Xiaomi’s electric-vehicle business alone caused the plan.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Does this mean Xiaomi is closing stores worldwide?
No. The reported program concerns Xiaomi Home stores in mainland China. The cited coverage does not establish a closure program for Xiaomi outlets in India, the United States, Europe, or other overseas markets, and it does not indicate that Xiaomi is leaving physical retail.
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Xiaomi’s 2024 results announcement described a historical plan to open approximately 10,000 new Mi Home stores overseas over the following five years. That forward-looking target is evidence of a prior overseas expansion plan, not confirmation of how many stores have since opened or of current execution.
Xiaomi’s India business has separately faced reported market-share pressure. In May 2026, Reuters reporting published by The Economic Times said Xiaomi appointed Alexander Tang to lead its India business as it sought to improve performance; the report put Xiaomi’s India smartphone share at 12% in Q1 2026, citing executives familiar with the matter. That is separate from the mainland China store report and does not show that Indian stores are included in this plan. Read the India report.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsWhat could customers and dealers experience?
If the reported closures proceed, the immediate effects would be local to mainland China. Customers may have fewer nearby branded outlets, while surviving stores or other authorized retailers may absorb some demand. A store closure is not, by itself, proof that warranty coverage, repairs, or other after-sales services have ended. Xiaomi’s arrangements for any affected location are not established by the reports, so customers should check local Xiaomi support channels for service options rather than infer a change in coverage.
Dealers may face different outcomes: a permanent closure, a dealer’s exit from Xiaomi-branded retail, continued independent operation after losing Xiaomi-provided management, or relocation or consolidation. The public reporting does not disclose the final mix. It also does not identify affected locations, quantify job impacts, or establish what happened to stores marked for review.
Quick Recap
What remains unknown
- The final number of stores actually closed during 2026.
- The locations and the detailed financial or operating thresholds used to identify stores.
- How many outlets may be relocated, consolidated, reclassified, or continued independently.
- The current size of Xiaomi’s mainland China offline network after the reported review.
- Whether Xiaomi has publicly confirmed the internal notice or the reported dealer-support terms.
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