Sam's Club to open 5th Beijing store

Sam's Club, Walmart Inc's membership retail chain, is scheduled to launch its 61st store in China on Friday (Nov 21) with a grand opening in Beijing's Changping district — part of an aggressive push to attract affluent urban shoppers and accelerate growth through new locations and digital deliveries.

Since entering Beijing in 2003, the retailer has launched five stores, including the planned new launch, with the Changping store marking the latest strategic addition to its rapidly growing retail network. It is the second store launch this month after one in Yangzhou, Jiangsu province.

The company's entry into Changping is expected to stimulate local economic activity, enhance business competitiveness and provide residents with a wider range of premium lifestyle choices. The retailer has forged partnerships with over 20 local enterprises in the area to deliver exclusive products, providing a platform for local goods to reach broader, more diverse consumer bases, said the company.

The Changping store promises an enhanced shopping experience characterized by its signature "treasure hunting" concept, which features rare and high-end products such as Lebanese Patchi chocolates, limited-edition LEGO Ferrari F1 car models, and 3D Harry Potter-themed Christmas tree puzzles.

The store also focuses on operational efficiency, which also translates into competitive pricing and rapid delivery services.

The retailer's "one-hour express" delivery will be available for more than 1,000 high-demand products in Changping.

According to Walmart's financial results for the second quarter of the current fiscal year, its Chinese market net sales reached $5.8 billion, representing a 30.1 percent year-on-year surge.

Sam's Club maintained robust growth in the second quarter, with transaction volume surging by double digits. The membership-based retailer expanded its footprint by eight new stores over the past 12 months.

Jason Yu, general manager of CTR Market Research, said Sam's Club's new store expansion typically prioritizes economically developed regions, such as first-tier cities, strong second-tier or thriving cities such as Jinjiang, Fujian province.

"These areas boast high GDPs, leading per capita disposable incomes, and a target customer base (middle-to-high-income households) with strong purchasing power and willingness to consume, making them well-suited to support a membership-based retail model," Yu said.

However, Sam's Club has faced some challenges recently. The retailer's app redesign, which altered product images from real photos to retouched "art shots "earlier this year, sparked backlash from consumers. In addition, there have been concerns over product quality, with some members criticizing Sam's for introducing lower-priced brands like Orion Choco Pies and Weilong konjac snacks.

Yu said: "Although Sam's has faced some negative public sentiment this year, the short-term impact on its performance has been limited. The primary drivers of growth remain its new store openings and the strategic deployment of forward warehouses."

wangzhuoqiong@chinadaily.com.cn