BEIJING, September 2 — Sam’s Club, the membership warehouse chain owned by Walmart Inc., is accelerating its expansion in China after its membership in the country surpassed 10.7 million, the company said. The figure, cited by the company as a milestone, indicates robust consumer interest in the bulk-retail model. The chain, which first entered China in 1996 with a store in Shenzhen, now operates more than 50 locations across the country.
Walmart, its parent, runs over 400 retail units in China overall, including both Sam’s Club outlets and hypermarkets. The expansion strategy includes a focus on second-tier cities, which are seeing rapid urbanization, with the company indicating it would accelerate its pace of new openings, though it has not provided a specific timeline.
Membership model gains traction
The annual-fee model, priced at approximately 260 yuan per year (about US$36) in China, has proved popular among affluent urban consumers seeking bulk, high-quality goods. Sam’s Club reports strong same-store sales growth and high membership renewal rates, which the company attributes to customer loyalty. The chain has adapted to local preferences by offering more fresh produce and prepared foods.
Digital integration is central to the expansion. The company’s Chinese website and mobile app offer online ordering and delivery, with same-day service in many cities; online orders account for a significant portion of total sales.
The company plans to invest in supply chain and logistics to support new store openings.
Competitive landscape
Sam’s Club faces a crowded field in China’s retail sector. Costco opened its first Chinese store in Shanghai in 2019, and domestic players such as Alibaba’s Freshippo also offer membership-based shopping. Analysts note the market is highly competitive, though Sam’s Club’s long history in the country and its focus on membership value have helped it stand out.
The expansion is part of Walmart’s broader international growth strategy, even as the company has faced challenges in other markets. Walmart reported total revenue of $648.1 billion for the fiscal year ending January 31, 2024, with international sales of approximately $111.2 billion.
China is considered a key growth market, and Sam’s Club’s Chinese operations have been profitable, contributing to that segment. The company has not disclosed specific financial figures for its China operations. Walmart’s chief executive, Doug McMillon, has emphasized the importance of international markets for future growth.
Sam’s Club’s global footprint includes more than 600 clubs, the majority in the United States. The announcement was made at a press conference in Beijing, where executives expressed confidence in the market.
The expansion is expected to create jobs and intensify competition in the Chinese retail sector, a development that may benefit consumers but will test Sam’s Club’s ability to secure prime locations and build efficient supply chains. The company’s membership milestone suggests the model retains considerable appeal.
