Why Walmart Is Leaning In While Others Pull Back in China

A Different Kind of Commitment

As some of the world’s most recognizable retailers exit or shrink their operations in China, Walmart is taking a different approach. It is investing, expanding, and testing new formats, signaling a long-term belief in the region’s potential and its value as a proving ground for retail innovation.

Walmart has been operating in China since 1996. Today, it runs nearly 300 Walmart stores and more than 50 Sam’s Clubs across the country, with Sam’s Club driving the majority of the company’s growth. In the most recent fiscal year, Walmart China delivered more than $20 billion in revenue. That included a 34 percent increase in e-commerce sales and nearly 28 percent growth in total net sales year-over-year. The performance is impressive, but it’s the way Walmart is getting there that makes the story even more compelling.

A Membership Model That Keeps Growing

Sam’s Club is quickly becoming one of Walmart’s most successful formats globally, and China is leading the charge. Two clubs in China exceeded $500 million in annual sales in 2023. By the end of this year, that number is expected to grow to eight. During the most recent New Year season, membership increased by more than 40 percent.

Chinese shoppers are responding to what Sam’s Club does best: consistent quality, competitive prices, and a shopping experience that feels both premium and practical. Shoppers can spend the day browsing with friends and family or open their phones and have their favorite items delivered to their doors. Online sales now account for roughly half of Sam’s Club revenue in China.

Omnichannel, Not Just as a Concept

Walmart’s transformation in China isn’t about going digital for the sake of it. It’s about building a system where physical stores and online channels work together seamlessly. Sam’s Club locations now serve as both retail destinations and fulfillment centers. Orders are picked in-store or in small satellite facilities nearby and delivered quickly, often within an hour. While Walmart has not confirmed delivery windows publicly, local partnerships and infrastructure allow for fast, reliable service in dense urban markets.

This model allows Walmart to get more out of its real estate. A club can serve hundreds of in-person members while simultaneously supporting online orders behind the scenes. As Walmart China CEO Christina Zhu has explained, the company is able to “sweat its assets twice,” using the same footprint for two different revenue streams.

Laying the Foundation for What Comes Next

Walmart’s continued investment in China is not just about keeping pace. It’s about building the infrastructure needed to lead. In 2019, Walmart announced a $1.2 billion investment to modernize its supply chain network in China. The long-term plan includes the development or upgrade of at least ten distribution centers, with a time horizon of 10 to 20 years. These facilities are designed to support both traditional retail and rapid e-commerce fulfillment.

At the same time, Walmart is experimenting with new formats. It recently opened two small stores in Shenzhen that focus on essentials and local delivery. These neighborhood locations are more affordable to operate than hypermarkets and are being tested in other cities. Early results show improved foot traffic and strong sales, particularly when paired with Walmart’s digital delivery infrastructure.

Sharing What Works Across the Globe

What Walmart is learning in China is starting to shape how it operates elsewhere. Flipkart in India has rolled out a fast-growing network of dark stores based on the same quick commerce model Walmart developed in China. Walmex, which oversees operations in Mexico and Central America, is also adapting the approach. With more than 4,000 stores already in place across major cities, Walmex leaders believe they can reach the majority of urban consumers in under 10 minutes.

Rather than reinventing the wheel in each market, Walmart is lifting and adapting its best ideas, starting with those that prove successful in China.

Final Thoughts

For Walmart, China is more than a retail market. It’s a place where the company can test bold ideas, scale what works, and build a model that blends local nuance with global consistency. While others step back, Walmart is stepping forward with a plan rooted in operational excellence, digital fluency, and long-term vision.

That mindset matters not just for China, but for every supplier, brand, and partner connected to Walmart’s global business. Because what succeeds in one part of the world often sets the pace for the rest.

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