Analysis of the Impact of Sam's Club Food Safety Issues on Middle-Class Consumer Confidence

According to the latest online information, Sam’s Club in 2025 has experienced multiple food safety incidents that have attracted public attention [1][2]:

1. Live Mouse in Mochi Incident (December 2025)
   ：A Beijing consumer found a live mouse in the packaging box of Member’s Mark Original Mochi purchased from Sam’s Club, and there were suspected gnaw marks on the surface of the packaging box [1]

2. Orion Pie Selection Controversy (July 2025)
   ：Sam’s Club removed multiple well-regarded products (such as sun cakes, rice pudding, low-sugar egg yolk pastries, etc.) and added mass-brand snacks like low-sugar Orion pies, triggering questions about selection quality [2]

3. Multiple Quality Complaints
   ：Data from the Heimaotousu platform shows that complaints against Sam’s Club have exceeded 13,000, covering issues such as food safety and false advertising [1]

According to industry analysis data, Sam’s Club has approximately 9 million paid members in China, with annual membership fee revenue exceeding 2.3 billion yuan [3]. However, recent food safety incidents have led to a noticeable decline in consumer confidence:

• Many long-time members have clearly stated “they will not renew their cards next year”
• “Sam’s is no longer worth it” and “Sam’s alternatives” have become hot topics on social platforms
• Member satisfaction has dropped to 79%, hitting a five-year low
• Return rate has increased by 3 percentage points year-on-year to 8.5% [4]

CBNData research shows that the proportion of members under 30 has plummeted from 28% in 2020 to 15% in 2024 [4], reflecting the rapid decline in trust in the Sam’s Club brand among young middle-class groups.

Sam’s Club’s store expansion rate has surged from 12 in 2015 to 61 in 2025 [1], creating obvious tension between this rapid expansion and its quality control system. Zhu Danpeng, a Chinese food industry analyst, pointed out that Sam’s Club’s frequent selection issues are directly related to its rapid expansion in recent years [1].

The previous business philosophy of “members first, quality over sales” is being impacted by a focus on scale efficiency. Phenomena such as product images on the App changing from real shots to refined AI-generated images and allegations of being driven by sales KPIs all reflect signs of a shift in corporate culture [1][3].

Competition in the membership retail market is becoming increasingly fierce, with alternative options such as Costco, ALDI, and Hema continuing to emerge. At the same time, local retailers like Pang Donglai have won reputation with extreme quality service, providing consumers with more “alternative” options [3][4].

The Sam’s Club incident reflects that middle-class consumers are undergoing a shift from “quality premium” to “rational consumption”. A Forrester report shows that consumer brand loyalty has systematically decreased by 25% in 2025 [4], and consumers are more inclined to compare prices across multiple platforms and pay selectively.

The public opinion effect of food safety issues may spread to the entire membership retail industry. Walmart’s financial report shows that the trends of rising annual return rates and declining member satisfaction at Sam’s Club have attracted the attention of the capital market [4].

Consumers are turning their attention to enterprises that can provide more transparent quality control and better services. For example, quality-focused retailers like Pang Donglai have gained more favor, and the quality upgrade of premium supermarkets and online platforms is also diverting member consumption [3][4].

Sam’s Club’s food safety issues have caused a significant trust impact on its core user group—the middle-class consumers. If the company fails to make substantial improvements in quality control systems, supply chain management, and crisis response, it is expected to face dual pressures of member attrition and brand image damage.

• Change in member renewal rate in 2026
• Frequency of subsequent food safety incidents
• Change in competitors’ market share
• Adjustment of middle-class consumption expenditure structure

[1] Sina Finance - “Members Who Gave Up Renewal and Sam’s Employees Driven by KPIs” (https://finance.sina.com.cn/roll/2025-12-11/doc-inhamnyi6585999.shtml)

[2] Zhihu Column - “Eight Major Events in the Food Industry in 2025: Sam’s Club Selection Storm” (https://zhuanlan.zhihu.com/p/1987912487530696857)

[3] NetEase Hao - “Sam’s ‘Blast’, 300 Million Middle Class’s Sky Collapsed!” (https://www.163.com/dy/article/KGJM61KL055674JO.html)

[4] Sina Finance - “Pervasive Membership Consumption Can’t Hold Li Guoqing’s ‘Entrepreneurial Dream’” (https://finance.sina.com.cn/jjxw/2025-12-22/doc-inhcsexh9225570.shtml)