Analysis of Growth and Supply Chain Efficiency of Walmart Sam's Club in the Chinese Market

Based on the latest market research data and industry analysis reports, I will provide you with a detailed analysis of the growth performance and supply chain efficiency advantages of Walmart Sam’s Club in the Chinese market.

Sam’s Club has performed strongly in the Chinese market, with sales exceeding RMB 100 billion in 2024, accounting for two-thirds of Walmart China’s performance, and has become the core driver of Walmart China’s growth [1][2]. As of September 2025, Sam’s Club operates 57 stores in mainland China, with 8-10 new stores expected to open in 2025, and more than 20 reserved stores signed or under construction [2]. In terms of single-store performance, 8 Sam’s Club stores have annual sales exceeding RMB 3 billion, with an average single-store performance of approximately RMB 2 billion, far surpassing Costco’s average single-store sales of approximately RMB 1.3 billion [2].

Sam’s Club’s membership renewal rate in 2024 reached as high as 86%, far exceeding Costco China’s 68%, which fully reflects the effectiveness of its business model and high member loyalty [1]. Through precise market positioning, Sam’s Club focuses on mid-to-high-end consumer groups, especially middle-class families pursuing a quality life, and has successfully shaped its brand image as a “provider of high-quality life”.

The most prominent supply chain advantage of Sam’s Club lies in its

. As of the second fiscal quarter of 2025, Sam’s Club has opened more than 500 front warehouses in China, covering 25 cities, with online orders accounting for more than 48% of total orders, and its 30-minute delivery service covers 80% of members [1][3]. In contrast, Costco currently only has 7 stores in mainland China and has not established a similar instant retail warehouse and distribution system, which puts it at a clear disadvantage compared to Sam’s Club in terms of response speed and convenience [2][4].

In terms of fulfillment execution, relying on the collaboration of intelligent positioning system devices and real-time warehouse and distribution control capabilities, Sam’s Club can complete the entire process from order picking to packaging in an average of 2 minutes, even for orders covering multiple temperature zones such as ambient, refrigerated, and frozen goods, and almost all orders are delivered on time within one hour [3]. This high-efficiency fulfillment capability is currently unmatched by Costco.

Sam’s Club also has a significant efficiency advantage in inventory management. Through its global direct procurement network and in-depth cooperation with more than 2,000 high-quality suppliers, Sam’s Club has achieved efficient operations with

. Its intelligent warehousing system controls inventory turnover days to , which is more than 50% shorter than traditional supermarkets [1]. This efficiency indicator far exceeds the industry average, bringing significant cost advantages and capital turnover advantages to Sam’s Club.

Although Costco is also known for efficient operations globally, its supply chain network in the Chinese market has not reached the level of refinement of Sam’s Club. Sam’s Club’s AI predictive replenishment system analyzes dozens of dynamic factors such as historical sales data, weather changes, and marketing activities to build a high-precision demand forecasting and replenishment model. In front warehouses and cloud warehouses, nearly 90% of replenishment instructions are automatically generated by the system, significantly improving supply chain response efficiency [3].

Based on the consumption big data of 30 million members, Sam’s Club has built a

to achieve precise supply. By real-time monitoring social media volume (such as Douyin Index, WeChat Index), Sam’s Club has established a “hot product popularity early warning model”, which automatically triggers supply chain production expansion instructions when the search volume of a single product increases by more than 200% month-on-month [1]. This data-driven decision-making mechanism keeps Sam’s Club’s , far lower than the industry level of 3%-5%.

Although Costco also has strong data analysis capabilities, its localization application is obviously insufficient. Costco’s membership renewal rate in the Chinese market is only 62%, far lower than its global average of 90%, which reflects that its response speed and accuracy to changes in Chinese consumer demand still need to be improved [4].

Sam’s Club adopts advanced

and strict quality control measures to ensure the freshness and quality of fresh products. Taking Chilean cherries as an example, Sam’s Club delivers them directly to stores via cold chain within 24 hours, with a price 30% lower than the market price [1]. Walmart’s supply chain network has achieved end-to-end digital transformation, realizing intelligent management of the entire link from product production to terminal consumption, and can accurately respond to market demand whether it is daily sales or peak holiday periods.

Although Costco also attaches importance to product quality, its investment in localized cold chain logistics construction is limited. Its adherence to the “suburban model” and fully self-built model, while meeting the bulk purchasing needs of some consumers, has obvious shortcomings in instant delivery and convenience [4].

The success of Sam’s Club in the Chinese market is largely attributed to its

capabilities. In response to Chinese consumer preferences, Sam’s Club has developed characteristic products such as Sweet Osmanthus Fermented Rice Cake and Taro Mousse Basque Cake, accurately meeting the demand for “sweet but not cloying” [1]. In line with the trend of smaller Chinese families, Sam’s Club has launched small-packaged products, driving the growth of related categories by more than 40%. This ability to quickly respond to local market demand is difficult for Costco to match.

In contrast, Costco adheres to a unified global model and is relatively conservative in localization adaptation. Costco’s location strategy - adhering to the “suburban model” of self-built 20,000-square-meter flagship stores plus 30,000-square-meter parking lots - makes its stores far from the city center, greatly reducing convenience. The Minhang store in Shanghai is 30 kilometers away from the city center, and there are only 4 communities within 3 kilometers of the Jiangning store in Nanjing. This location strategy limits access for car-free families in first-tier Chinese cities where car ownership is only 40% [4].

The core reasons why Sam’s Club’s supply chain efficiency leads Costco are:

, , , and . Through the “cloud warehouse + front warehouse” instant retail model, Sam’s Club has achieved deep integration of online and offline channels, and its 30-minute delivery service covers 80% of members, which is a service experience that Costco cannot currently provide. At the same time, Sam’s Club’s inventory turnover days within 15 days and slow-moving product rate below 1% all reflect the refinement of its supply chain management.

Although Costco still maintains a leading global renewal rate (89.8% globally), its development strategy in the Chinese market is too conservative, lacking flexible adaptability to the local market. In the future, if Costco wants to reverse its decline in the Chinese market, it needs to increase investment in instant retail layout and localization innovation.

[1] 2025 In-Depth Analysis of the Business Model and Competitiveness of “Sam’s CLUB”. Zhihu Column. https://zhuanlan.zhihu.com/p/1967181888453083269

[2] The World’s Fastest-Growing Store Revealed: Costco’s Revenue Reaches 1.96 Trillion. FoodTalks. https://www.foodtalks.cn/news/59380

[3] Empowered by Technology, Led by Green: Digital and Intelligent Upgrade of Walmart China’s Supply Chain. Walmart China Official Website. https://www.walmart.cn/newsroom/1871.html

[4] Costco Releases Latest Financial Report: Dilemmas in the Chinese Market Await Solutions. 36Kr. https://m.36kr.com/p/3314488536639236