Walmart’s Sam’s Club accelerates expansion in China as membership passes 10.7 million
US membership-only retailer Sam’s Club has sped up its expansion in China this year, with the launch of its sixth Beijing location on Monday drawing long queues of eager shoppers. The Walmart-owned warehouse retailer has found a winning formula in China, with its value pricing and exclusive goods attracting middle-class consumers even as some foreign brands shut down stores or pull out of the…
Walmart's Sam's Club has accelerated its expansion in China, with the launch of its sixth Beijing location on Monday attracting long lines of eager shoppers. The warehouse retailer, owned by Walmart, has successfully tapped into the Chinese market with its value pricing and exclusive goods, attracting middle-class consumers despite some foreign brands pulling out of the country.
As of June, Sam's Club reported having 10.7 million paid members in China, with annual membership revenue potentially reaching 3 billion yuan (US$450 million). The membership tiers are priced at 260 yuan and 680 yuan per year, respectively. Cathy Chao, senior director of Asia-Pacific corporate ratings at Fitch Ratings, explained that the allure of Sam's Club lies in its extensive and high-quality product selection, along with wholesale pricing.
Many of these goods are unique and not available through other channels, and consumers perceive consistently high-quality merchandise at a reasonable price, justifying the membership fees.
Chao added that the membership model encourages frequent visits by consumers seeking to maximize the value of their annual fee. The company plans to open 13 new Sam's Club stores nationwide this year, bringing the total to 76, including several lower-tier cities. The retailer has localized its offerings by introducing China-specific products, with the top-selling items varying by city.
In Beijing, it sells sweetcorn, in Shanghai it offers local brand Bright Dairy milk, and in Guangzhou, it stocks sweet bananas, according to the company's list in August.
Walmart's China sales increased nearly 21% to US$7 billion in the quarter ending on July 31, driven by the momentum of Sam's Club. In June, Beijing authorities summoned Sam's Club over frequent food-safety issues, prompting the company to initiate internal reviews and corrective actions. Following the incident, a leadership reshuffle occurred, with former Alibaba vice-president Liu Peng appointed as president of Sam's Club China.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
