Walmart’s Sam’s Club Thrives in China Amid Consumer Slump

Walmart's (WMT) expansion in China is proving to be a strong growth driver, despite the challenges foreign brands face in the market. China now contributes just 3% to Walmart's global revenue, but its sales surged 19.3% to $24.6 billion in the past fiscal year, with a 20.7% increase in the latest quarter, far outpacing Walmart's global growth of 5.9%. This success is largely driven by Sam's Club, which has become the company's primary growth engine in China, contributing roughly 70% of Walmart's revenue in the country.

The turnaround is credited to Christina Zhu, who became Walmart China's president and CEO in May 2020. Zhu has spearheaded a digital-first strategy, transforming Sam's Club into a key player in China's hyper-competitive retail landscape. The number of Sam's Club locations has grown from 15 in 2016 to 67 as of May, with membership reaching 10.7 million as of June, each paying at least 260 yuan ($39) annually for a basic tier.

Zhu's approach includes leveraging Sam's Club stores as fulfillment centers for a 'cloud warehouse' network, catering to China's demand for ultra-fast delivery. The company has localized its offerings, adjusting portion sizes and product mixes to suit Chinese tastes while maintaining high food-safety and quality-control standards. This strategy has helped Walmart stand out amid intense price wars and competition from domestic rivals.

Walmart's success in China is notable against the backdrop of a sluggish consumer market. Retail sales of consumer goods in China rose just 1.1% in the first eight months of the year, down from 4.6% in the same period in 2025. Despite this, Walmart's ability to grow at a 20% clip suggests that its membership-warehouse model, paired with aggressive digital fulfillment, is resonating with China's urban middle and upper-middle classes.