Membership stores bright spot in retail biz

In 2024, membership stores in China experienced strong growth momentum, with annual sales increasing by more than 20 percent year-on-year, according to Kantar Worldpanel.

International retailers, led by Sam's Club, have expanded rapidly in the Chinese market, leveraging their mature supply chains, high-value private-label products and strong member loyalty to establish a dominant position.

Data from Kantar Worldpanel show that in 2024, Sam's Club's penetration rate surpassed 7 percent, marking a 2 percentage point increase from the previous year. The retailer plans to continue expanding into smaller city markets this year.

Walmart Inc, parent company of Sam's Club, reported strong fourth-quarter results this month, with robust revenue and operating income growth. For the full fiscal year, Walmart's revenue reached $681 billion, up 5.1 percent year-on-year.

Walmart China net sales reached $5.1 billlion in the fourth quarter, up 27.7 percent year-on-year. In China, Walmart's e-commerce sales surged 34 percent year-on-year during the fourth quarter, of which Sam's Club operations in the country contributed a major portion.

"For the quarter and the year, we're pleased with our performance during the holiday season across the world," said Walmart CEO Douglas McMillon. "We performed well in the US, Mexico, Canada and China."

He said Sam's Club in China just wrapped up a strong Spring Festival operation.

John David Rainey, Walmart's executive vice-president and CFO, said China is a key growth market. "Our business in China continued to grow at a double-digit pace, driven by the strength of Sam's Club and e-commerce," he said.

As of 2024, Walmart operated 283 Walmart stores and 53 Sam's Club stores in China. In the fiscal year, the company opened six new stores, including four in the fourth quarter.

In addition, domestic membership store brands are also actively growing their presence.

M Club, a subsidiary of RT-Mart, operated nine stores across the country in 2024 and plans to focus on expanding in Jiangsu province in 2025 to deepen its market penetration.

Kantar Worldpanel data showed that M Club venues are the most dynamic segment within RT-Mart's business portfolio, with particularly strong sales growth in 2024.