Sam’s Club (山姆会员商店) has become one of the most successful foreign retailers in China. It won over middle-class consumers with bulk buying, private-label products and a membership model that many of its competitors have struggled to replicate. But a recent food safety intervention by Chinese regulators suggests Sam’s Club may now have to refocus its goals: less growth, more supply chain fixes.
The pressure comes after China’s market regulator summoned Walmart China executives over what it described as ‘frequent food safety issues’. Authorities told the company they must prioritise food safety following a series of mishaps that have drawn public attention over the past year.
On the same day as the regulatory meeting, Walmart China acted fast to update its corporate registration and replace chairman Muk Sook Yee with Sam’s Club China president Liu Peng, a former Alibaba executive. Days later, Sam’s Club China chief merchandising officer Zhang Qing announced his resignation.
The leadership changes arrive at a critical moment. Sam’s Club opened ten new stores in China during 2025, bringing its nationwide total to 63. The chain has been one of the brightest spots in foreign retail, expanding aggressively while many international brands have struggled to maintain growth.
The Dao view: Sam’s Club food safety troubles stem from overzealous China growth
It could be argued that this growth may have exposed operational weaknesses. Reports involving – get ready to wince – rats and maggots, among other food safety concerns have circulated. The obvious question is whether Sam’s speedy expansion has outpaced its quality-control systems.
And that’s not all. There’s another intersection at play here: instant delivery services. They’re increasingly shaping consumer expectations for speed. They’re also forcing retailers to manage inventory more efficiently, while juggling product standards across supply chains of gordian complexity.
If you were Liu Peng, you’d probably want to think long and hard about this. Local sourcing should be strengthened, supplier oversight tightened, and consumer trust rebuilt. How successfully the new chairman does so could determine whether Sam’s Club’s China growth story continues.
