Walmart’s Sam’s Club cracks China market formula even as foreign retailers shut shop
Walmart’s Sam’s Club continues to thrive in China by adapting its offerings to local tastes while many foreign retailers reduce their presence in the market.
Walmart's Sam's Club is achieving significant success in China, marking its continued expansion with the opening of 10 new stores in 2025, particularly in smaller cities such as Zhangjiagang and Yangzhou. This development indicates the company's commitment to penetrating deeper into the rapidly evolving Chinese retail market, which has seen many foreign competitors retreat. The strategic decision to open locations in smaller urban centers reflects an understanding of the changing demographics and consumption patterns in China.
To resonate with Chinese consumers, Sam's Club has shifted away from its traditional U.S. retail model, opting instead to localize its product offerings. This tactic involves introducing items that cater to Chinese preferences, such as traditional gift items during key festivals like the Lunar New Year, where products like copper gourd ornaments and ginseng are gaining popularity. This adaptability has resulted in increased foot traffic in stores, demonstrating that the brand is successfully meeting the cultural and gastronomic demands of Chinese shoppers, which contrasts sharply with the strategies of other foreign retailers who have faced challenges in this environment.
Furthermore, Sam's Club has reformulated its private-label Member's Mark product line to better suit local needs, adjusting packaging sizes to match consumer habits. For instance, the American-style steak has been downsized from 1kg to approximately 450 grams, reflecting a keen awareness of the market's preferences. This level of localization and consumer-focused product strategy suggests that Sam's Club has not only recognized the potential within China's retail landscape but is also poised to capitalize on it, while others falter amid a complex market.