Bold claim: Sam’s Club is thriving in China precisely because it offers a premium, member-only experience at reasonable prices, a combination that resonates even as overall consumption softens. But here’s where it gets controversial: some observers question whether this model can scale deeply in a price-sensitive market where shopping tends to be high-frequency and cash-conscious.
This piece comes from CNBC’s The China Connection newsletter, which provides analysis on China’s economy. You can subscribe here: https://www.cnbc.com/lander?id=chinaconnection-newsletter
The core development
Recent Chinese data shows a key consumption gauge dipping to its weakest level in nearly three years. Yet this snapshot doesn’t tell the full tale. American membership warehouse clubs are showing a more nuanced picture: they attract customers who are willing to pay a substantial membership fee for a curated mix of premium goods offered at competitive prices, paired with a no-frills, discovery-friendly shopping atmosphere that adds extra incentive.
Sam’s Club, Walmart’s membership-based warehouse arm, debuted a new Beijing location last month, followed by a Shanghai store this week. The openings drew large crowds, created traffic jams for hours, and left shoppers waiting in long lines.
Walmart aims to open 10 new Sam’s Club locations in China within the year—its fastest expansion pace to date—and is on track to meet that goal, with the 10th store slated to open in Guangzhou next week.
The visual: Yangzhou’s first Sam’s Club opened in November 2025, drawing attention across the country.
Historically, warehouse clubs are known for bulk-buy discounts on staples. In China, where typical shopping has skewed toward frequent, smaller purchases, this model is still finding its footing and attracting a niche audience.
As Cameron Johnson, Shanghai-based senior partner at Tidal Wave Solutions, observes, many residents join group chats to split oversized packs, signaling a community-driven value proposition.
Sam’s Club emphasizes a distinct shopping experience: curated merchandise, exclusive items under the house brands Member’s Mark and Marketside, and an annual membership fee ranging from 260 to 680 yuan (roughly $37–$97). The overall appeal often hinges less on large immediate discounts and more on access to products you can’t easily find elsewhere.
Weiwen Han, a Bain & Company partner based in Hong Kong, describes the model as a membership arrangement that unlocks a full array of services just by paying the upfront fee.
Walmart’s China chapter: a shifting landscape
Walmart reached China in 1996 with a hypermarket presence, alongside Sam’s Club. Yet the hypermarket format—combining supermarket and department-store elements—has slowed as online shopping surged. Large online marketplaces, such as Alibaba and JD.com, have intensified price competition and convenience, squeezing traditional grocers and foreign players like Carrefour.
Since 2020, Walmart has closed nearly 150 hypermarkets in China, reducing its total to around 279 as of July, down from 412 in 2020.
Sam’s Club, by contrast, has proved more durable. The chain has transformed warehouses into both shopping destinations and e-commerce hubs, stocking shelves with products that are hard to compare elsewhere. Exclusive lines under Member’s Mark and Marketside contribute to its distinctiveness.
Beyond online options, the clubs offer an offline discovery experience that many local e-commerce players struggle to replicate, according to Han.
The results speak to momentum: Sam’s Club has grown into one of China’s fastest-expanding foreign retailers, with 56 stores nationwide compared with Costco’s seven. This expansion has helped drive Walmart’s strongest global net sales growth in the period, with China contributing a 21.9% year-over-year rise to $6.1 billion in the third quarter—outpacing Walmart International’s overall growth rate.
Why the experience matters
The blend of curated products and rapid digital convenience explains why the model appeals to affluents and how a single in-store visit can trigger multiple online orders. Some shoppers browse in person occasionally, then rely on the store’s app for repeated deliveries, effectively combining a shopping trip with ongoing convenience.
Industry observers note that for certain consumers, the appeal lies in the broad, predictable discovery experience—almost like a consumer-oriented amusement park for shopping. One expert compares the experience to a controlled, enjoyable outing rather than a routine errand.
Speed is also a factor in stickiness. Walmart reports very fast delivery performance in China, with about 80% of digital orders fulfilled within an hour.
For suppliers, the relationship with Sam’s Club can justify unique packaging or sizes and adds prestige to brands that partner with the club.
Competition and limitations
Not many domestic rivals have managed to replicate Sam’s Club’s membership model with similar success. Alibaba’s Freshippo closed its last members-only store in August, illustrating the difficulties of scaling the model in a crowded market.
Still, regional players have shown some traction. Pangdonglai, a Henan-based chain emphasizing a “people-first” philosophy, has attracted attention for its emotional value and trust-driven approach. However, scaling beyond its home base remains a challenge, as replicating its culture and high standards in larger cities proves tough.
Analysts warn that while some consumers are willing to pay for premium value, others seeking low-cost staples are migrating toward discount formats. As China’s consumer slump continues, warehouse clubs that combine quality with a distinctive shopping experience could remain among the more resilient parts of the sector.
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Need-to-know highlights
MetaX Integrated Circuits, a Chinese chipmaker focused on AI applications, debuted in Shanghai with a dramatic stock surge.
China’s November data showed softer growth in consumption, investment, and industrial output compared with expectations.
Government job openings are drawing many young people, with millions vying for civil-service positions as private-sector hiring slows.
Market snapshot
Chinese markets climbed midweek. Hong Kong’s Hang Seng rose about 0.8%, while the mainland CSI 300 climbed roughly 1.8% after MetaX’s impressive debut. Year-to-date, the Hang Seng gained around 26% and the CSI 300 around 16%. The offshore yuan traded around 7.04 per dollar.
Looking ahead
Key dates to watch: December 20 for loan prime rates, and December 22–27 for the 19th session of the National People’s Congress Standing Committee.
Would you prioritize a membership-driven warehouse club for premium value, or do traditional discount formats better suit your shopping habits? Share your take in the comments.
