Walmart will expand its presence in China with new Walmart and Sam's Club stores in five cities. The American company will simultaneously develop its physical network, online sales, mobile applications and delivery services.
Walmart China President and CEO Zhu Xiaojin announced that online sales accounted for more than half of the company's revenue in China in 2025. He said Walmart has transformed from a traditional brick-and-mortar store operator to a retailer that combines various channels.
“Walmart will continue to invest in China by expanding its omnichannel footprint, strengthening localized product development with suppliers and deepening its presence in local communities,“ Zhu Xiaojin said.The company has signed cooperation agreements with local governments in Yentai, Beijing's Changping District, Shenyang, Wuhan and Nantong. The plans call for new Walmart and Sam's Club locations, with the specific distribution depending on the city and local market.
Fewer hypermarkets, but higher sales
Walmart entered China in 1996 and initially grew primarily through hypermarkets. However, since 2016, the company has begun closing underperforming locations and directing more investment towards Sam's Club. The chain operates on a membership basis and has become a major driver of Walmart's growth in the country.
According to the China Association of Retail Chains and Franchises, Walmart and Sam's Club operated a total of 342 stores in 2025, down about 100 from their peak in 2019. Despite the network's contraction, Walmart China's sales exceeded 190 billion yuan, and Sam's Club's contribution was over 100 billion yuan.
Competition in the warehouse club segment is intensifying. Costco operates seven stores in China and plans to expand to 16 by fiscal 2030. Costco's sales in the country exceeded 10 billion yuan in 2025, with average annual revenue per store exceeding 1.4 billion yuan.
Challenges facing Sam's Club
Sam's Club's expansion of its membership base has also been accompanied by operational problems. Consumer complaints about product quality have increased, and in June, China's market regulator sought an explanation from the chain over food safety issues. Shortly after, Sam's Club China's chief commercial officer Zhang Qing resigned.
Walmart's strategy changes come amid shrinking sales in traditional grocery channels. Sales at hypermarkets, supermarkets and convenience stores fell 2.5 percent in the first half of the year, while neighborhood supermarkets grew 3.6 percent. The data shows that Chinese consumers are increasingly looking for a combination of price, convenience and digital services.