How Christina Zhu turned Sam’s Club into Walmart’s unlikely growth engine in China

Christina Zhu, Walmart's head of operations in China, recalls her childhood memories of her parents struggling to shop for fresh produce at local markets in China. Today, Zhu says Chinese shoppers have access to an unprecedented number of choices, making them the most demanding customers in the world. Walmart entered the Chinese market in 1996, with its first Supercenter and Sam's Club in Shenzhen, and has since grown to 67 Sam's Clubs as of May 2023.

Sam's Clubs contribute around 70% of Walmart's revenue in China, and the business has expanded from 15 clubs in 2016 to 67 in 2023. In 2022, Sam's Club had 10.7 million members in China, each paying at least 260 yuan ($39) per year for a basic membership. Sales in the country grew 19.3% last year, with a 20.7% increase in the most recent quarter. This growth is notable even as other foreign brands struggle in China.

Part of Walmart's success can be attributed to its focus on providing convenience and high-quality products to upper-middle-class families. The stores serve as both a shopping destination and a fulfillment center, delivering groceries within 30 minutes, even in other developed markets where a delivery might take up to three days.

Foreign brands have struggled in China due to fierce competition and economic downturns, but Walmart has managed to keep its foreign halo through high standards of food safety and quality control, as well as localized marketing and digitization efforts.