Source | Lingshou Sam's Club's China Speed Sam's Club has once again broken its own single-store sales ceiling. According to Lianshang.com, eight Sam's Club stores in China are expected to surpass $500 million (approximately RMB 3.67 billion) in annual sales. This was revealed by Walmart China President and CEO Zhu Xiaojing at the 2025 Walmart Investment Conference on the evening of April 9. In particular, its "store-warehouse-cloud integration" model has helped its "online-to-home" business account for half of its revenue, propelling it to the top of the membership warehouse club sector. In 2023, only three Sam's Club stores had annual sales exceeding $500 million. According to previous media reports, Sam's Club China's 2024 sales likely exceeded RMB 100 billion. Walmart's financial report released in February 2025 (covering February 1, 2024, to January 31, 2025) showed that Walmart China's revenue for fiscal 2024 was $20.3 billion, approximately RMB 147.3 billion. If Sam's Club China's RMB 100 billion in sales is accurate, it accounts for two-thirds of Walmart China's total revenue, meaning nearly 70% of Walmart China's sales come from Sam's Club, making it an undisputed pillar of the business. Notably, Sam's Club's expansion in China has been accelerating. From the opening of its first store in Futian, Shenzhen, in August 1996 to its 54th store in Jiaxing, Sam's Club took nearly 30 years. However, going from the 48th to the 60th store took just over a year. This change in pace is nothing short of a "Great Leap Forward." In just a few years, Sam's Club has transformed from a "conservative player" opening one or two new stores a year to an aggressive expander averaging six to seven new stores annually. In 2024, Sam's Club opened six new stores in China, spanning Wenzhou, Shaoxing, Quanzhou, Jiaxing, and other cities. As of early 2025, there were 54 stores nationwide, with expectations to exceed 60 by year-end. Upcoming new stores include locations in Wuhan Jiangan, Zhongshan Shiqi, Hefei Jingkai, Shenzhen Bao'an, Yangzhou Hanjiang, and Zhangjiagang, some of which are already in the "lights on" phase, with openings imminent. What's more intriguing is that Sam's Club is quietly breaking its old rule of "only opening in first-tier cities": Zhangjiagang, Jinjiang, and Kunshan—the cities where these three stores are located—are all top members of the "Top 100 Counties." In other words, extending from Beijing, Shanghai, Guangzhou, and Shenzhen to "affluent counties," Sam's Club is penetrating more Chinese cities through a "high-quality downward expansion." Every Sam's Club store opening causes a local sensation and attracts significant attention. Take the Jiaxing store as an example: on March 20, 2025, Jiaxing's first Sam's Club opened its doors, featuring 18,000 square meters of shopping space, 1,000 parking spaces, 4,000 curated products, and over 30% private brand coverage. The store was packed, with customers queuing for over two hours, the parking lot full, and long lines at the checkout counters. All this makes it hard to believe that this is a "warehouse store" that requires a membership to enter. Behind this "Great Leap Forward" is certainly not impulsive expansion. In fact, in this quiet urban relay, Sam's Club is advancing step by step: from only landing in first-tier and new first-tier cities to now frequently entering "Top 100 Counties"; from opening one or two new stores a year to maintaining a steady pace of six to seven new stores annually in recent years. Not only is the pace faster, but the map of Sam's Club stores is being quietly redrawn, and China's membership warehouse club sector is gaining a new dimension. Why Sam's Club Is "Running Fast" Some may ask: where does Sam's Club get its confidence? It's primarily driven by a dual engine of capital and strategy. In August 2024, Walmart announced it would sell all its shares in JD.com, cashing out approximately $3.7 billion. The official statement said it was "focusing on the development of its local business in China." Clearly, the most critical use of this substantial capital is Sam's Club. In other words, this money is not simply a "stake reduction" but is seen as reinvestment in Sam's Club in China. Sam's Club is the high-growth engine worth betting on for Walmart in China. Building a Sam's Club store is not cheap—according to disclosures, new Sam's Club investments in Foshan, Qingdao, Beijing, and other places typically exceed RMB 500 million. With six to seven new stores per year, annual investment could reach around RMB 3 billion. The cash from the "share sale" just provided a "shot in the arm" for Sam's Club's capital expenditure. Strategically, Walmart China has also clarified its transformation approach. Since 2019, Walmart has closed over 140 hypermarket stores, reducing the total from 420 to fewer than 280, a "cliff-like contraction." In contrast, Sam's Club stores are increasing in number, with larger store areas and increasingly impressive single-store sales—by 2025, eight stores in China have annual sales exceeding $500 million. From "retreating from hypermarkets" to "aggressively expanding membership stores," Walmart China has made a directional pivot. The logic is clear: invest resources where growth is fast, and bet capital on future profit engines. Looking at store location strategy, this is not a simple downward expansion but a "high-net-worth downward expansion." Analyzing Sam's Club's site selection strategy, its downward expansion is not a blind rush to "populous and cheap" areas but a careful selection of "Top 100 Counties" with high GDP, high per capita income, and strong consumer willingness—Zhangjiagang, Jinjiang, and Kunshan are all economically strong counties in their regions, with consumption power comparable to provincial capitals, and they even have member profiles with "high loyalty and high purchase frequency." Additionally, the welcome from local governments has influenced Sam's Club's site selection to some extent. For example, in Beijing's Fangshan district, the local commerce bureau not only intervened early but also assisted with site selection and policy coordination to ensure the project started on schedule. In Jiaxing and Hefei, government reports explicitly mention "key introduction of Sam's Club," and some stores even enjoy infrastructure subsidies and land concessions. In other words, Sam's Club's store openings rely not only on its own calculations but also on leveraging cooperation with local governments. Furthermore, "store-warehouse-cloud integration" is Sam's Club's biggest moat. To some extent, this is the innovation and maturity of Sam's Club's own operating model. Behind this seemingly "grand" expansion lies a systematic approach that is replicable, implementable, and efficient. In Hefei, before the store even opened, the "Jisu Da" (instant delivery) service was already rolled out, with cloud warehouses set up first to lock in customers. In Jiaxing, on the day the new store opened, "Jisu Da" already covered urban areas like Xiuzhou, Nanhu, and Jingkai, achieving one-hour delivery. This is an omnichannel network with "warehouses" as the nerve endings: each Sam's Club store manages 8-15 front warehouses, covering a 3-kilometer radius, with riders completing the last mile. This "store-warehouse-cloud integration" model is not only Sam's Club's answer to instant retail but also the foundation of its high sales per square foot, high repurchase rates, and high average order value. In 2024, Sam's Club China's online sales accounted for over 50% of total revenue, front warehouses contributed over RMB 40 billion in transactions, and the average order value remained above RMB 200, making it a benchmark for the industry. But systems, models, and capital alone are not enough. The real secret to Sam's Club's roots in China is the products themselves. Good Products Win Consumers' Hearts First, product strength is the ultimate "fewer but better" philosophy. Sam's Club currently has about 4,000 SKUs, one-fifth of a traditional hypermarket, but this extreme curation delivers a "best of the best" product experience. More importantly, its private brand, Member's Mark, covers core categories such as food, daily necessities, maternal and baby products, and health. Take the Jiaxing store as an example: over 30% of its products are private brand Member's Mark, which is a major highlight: yogurt cheesecake, beef rolls, plush toys, retro Lego cameras... These products frequently appear in Xiaohongshu posts and friend circles, precisely hitting the "aesthetic of life" of urban middle-class consumers. At Sam's Club, consumers don't need to compare repeatedly; they can buy with confidence and feel it's worth it. Many Sam's Club fans say: "I don't know if something is the lowest price, but I know that what I buy at Sam's is definitely reliable." Take the popular Swiss roll as an example: the MM Original Earl Grey Swiss Roll, 16 pieces, sells for RMB 59.8, less than RMB 4 per piece. Although it's criticized for being too large for a family of three, its ingredients, ratio, and shelf life are significantly better than similar products on the market. In comparison, Hema's similar product has more flexible small packaging but falls short in cost-performance and brand trust. Second, service strength: its membership-driven closed-loop experience is a significant advantage. Sam's Club not only speaks through products but also drives growth through its membership system. In 2024, its premium member renewal rate reached 92%, and the conversion rate from regular to premium members was 30%. The Jiaxing store even launched a "one-day experience card" during its opening, using a low barrier to attract traffic and then converting through service experience into annual members, forming a growth flywheel of "planting grass - tasting - ordering - repurchasing." Sam's Club deeply understands consumer psychology—from "hot roast chicken" to "yogurt cheesecake" to "bestselling beef rolls," every hot product is backed by meticulous research and Xiaohongshu seeding. At the same time, offline food courts, optical centers, and hearing services strengthen its brand positioning as a "quality lifestyle platform" rather than a mere store. In other words, beyond products, Sam's Club knows how to "sell a lifestyle." At the Jiaxing store's "food court," Japanese abalone yakitori rolls, Angus double beef burgers, and Beijing roast duck pizza are often sold out as soon as they hit the shelves. In Shenzhen, Ningbo, and Beijing, members queuing to "check in" for Sam's Club roast chicken has become a standard urban lifestyle scene. For many, Sam's Club is not just a place to buy groceries but a "weekend ritual." Because of this, Sam's Club is breaking through its original user boundaries in China. It is evolving from a "middle-class supermarket" to a "middle-class lifestyle venue," from a "essential scenario" for middle-aged families to a new consumption map for young people, single young adults, and even young couples. Even with oversized packaging and short shelf life, it hasn't stopped young people from teaming up to buy. Finally, it's about value for money, not blindly low prices. Sam's Club doesn't engage in price wars or offer "everyday low prices" like discount stores. It emphasizes "value for money"—making customers feel that "for the same quality, Sam's is more cost-effective." But when competitors press hard, Sam's Club is not indifferent. In response to Hema's "Move Mountain Price," Sam's Club proactively lowered long-term prices on over 30 high-frequency SKUs, with cumulative price reductions of nearly RMB 900 million, covering categories like beef rolls, bakery, and salmon. It can be said that Sam's Club always finds the most sensitive balance between price and quality, winning consumers with "smart savings." Of course, Sam's Club's "rampage" is not without worries. First, the shrinking middle class is becoming a social phenomenon that cannot be ignored. With mortgages, tuition, medical care, and pensions weighing heavily, many families are actively cutting consumption budgets. "Large quantity, good price" bulk packaging is shifting from "cost-effective" to "a burden of leftovers." Second, Sam's Club's product selection leans toward European and American styles, which is not friendly to some young people and small families. Some bestsellers like Swiss rolls and giant chocolates have short shelf lives and large packaging, becoming a source of pressure to "finish eating." In contrast, platforms like Hema offer product selections more suited to Chinese family portion sizes. Additionally, the heat of the warehouse membership club track has attracted many players. Costco continues to expand into new cities; Pangdonglai has launched a membership model in Henan; local retailers like fudi, M Membership Store, and Dazhang are also making moves in different regions. A "full-scenario prolonged war" involving price, product selection, and membership is about to begin. From Jiaxing to Hefei, from Zhangjiagang to Beijing Fangshan, Sam's Club is spreading across the country in a near "snowball" fashion. Not every retail enterprise has the capital, supply chain, brand, and management capability, and not every "membership warehouse club" can earn the trust of China's middle class. Sam's Club can win because it not only adapts to the market but also transforms the market it operates in: it provides cities with a new way of consumption and consumers with a symbol of lifestyle—a self-identity of "I deserve better." In the current complex environment, intensifying competition, and accelerating demand changes, this intrinsic value system may be the key to whether Sam's Club can continue to run in the future. After all, the retail industry appears to sell products, but in essence, it sells "trust."