On 3 January, Business Observer, an investment-centric publisher on multiple platforms, reported that sources close to Sam’s Club in China disclosed that last year, the warehouse club supermarket from Walmart earned 100.5 billion RMB (13.74 billion USD) in revenue in China, with over 48% coming from online transactions. The report came about not long after pundits concluded that Sam’s Club was on track to earn 90 billion USD globally in 2024.
However, Sam’s Club published a statement, clarifying that it did not release data on its 2024 sales in China and will not respond to the report. The language is, of course, interesting as the supermarket did not outright deny the figure. But currently, the only official numbers of Sam’s Club’s performance in China last year are from Doug McMillon, its CEO: some of the Sam’s Club locations earned over 400 million USD by December, and it has opened over 50 stores in China (52 to be exact).
Despite retail facing difficulties in China in general, some businesses are thriving, such as Sam’s Club, Freshippo, Pangdonglai and potentially Yonghui Superstores. Many of them, Sam’s Club included, are deeply involved in their supply chain, to not only lower prices but also assure quality. Indeed, many netizens, including those commenting on Business Observer’s original post, expressed that the high-quality standard of the American chain, along with the likes of Pangdonglai, Pangdonglai-ised Yonghui and Freshippo, has earned their trust and cash.
Apart from quality and value for money, both originated from its control of the supply chain, Sam’s Club’s selection of merchandise is also differentiated from its competitors. The chain is also quickly expanding into lower-tiered cities and will continue to expand, according to McMillon. It will open 6 to 7 new locations each year in the next few years. Meanwhile, with Freshippo finding its own path and trying to stop being the “Chinese Sam”, Pangdonglai venturing into e-commerce and Yonghui under new management, the battle for retail in 2025 is definitely worth monitoring closely.
