Walmart plans to open seven new Sam’s Club stores in China, in a bid to counter the slowdown of its hypermarket business, according to Chaina Daily.
The US retail giant currently operates 10 Sam’s Club stores throughout the Asian nation, which target affluent families under a membership arrangement.
Sam’s Club members pay Rmb150 (US$24.23) per year to shop at the store, with memberships offered to individual shoppers and business customers.
To keep prices low, Sam’s Club stores stock fewer items than Walmart’s traditional supermarkets and hypermarkets.
Sam’s Club China chief executive Andrew Miles said the format has proven popular in China, with the majority of members being individual shoppers.
“While people say that retail is detail, clubs are also discipline models,” Miles said.
“Buyers need to think like members. A buyer has to take risks and has to be very brave because they have to choose one or two items in one category.”
After a period of rapid expansion, the growth of Walmart’s hypermarket stores in China has stagnated, with the retailer closing down a number of outlets over the past six months.
Retail Nation chief executive Hermann Ng told China Daily that Sam’s Club strategy was appealing to China’s growing middle and upper classes, and would eventually generate more profit for Walmart than hypermarkets.
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