The high end membership-only retail club chain is to open 40 more stores in mainland China by end of 2019.
High confidence in the market
Since the first Sam’s Club opened in Shenzhen in 1996, the company now has 19 stores covering different geographic regions of China: Beijing, Shanghai, Shenzhen, Guangzhou, Fuzhou, Dalian, Hangzhou, Suzhou, Wuhan, Changzhou, Zhuhai, Tianjin, Xiamen, Nanjing and Changsha.
The company plans to open new stores to complement current stores. Currently there is only one Sam’s Club in Shanghai, which was opened eight years ago in Pudong. A second one will shortly be launched in Shanghai’s Qinpu area. Meanwhile, the retailer is also negotiating for five more locations in Shanghai.
“Continuous investment is the best way to prove our confidence in the Chinese market", president of Sam's Club China, Andrew Miles, commented.
Source: IGD Research
Going from strength to strength
Sam’s Club has a strong performance in China. Its revenue is up by +8%YoY in 2018.
It has 2 million members in mainland China. It opened online store with direct delivery service in 2010. Same-day-delivery service for chilled and frozen food was launched in 2012 in main cities. In 2014, Sam’s Club App was launched after forming a strategic partnership with Tencent, opening the gateway of reaching WeChat’s one billion monthly active users. Recently, it started testing one-hour delivery service in Shengzhen.
Because of these progressive initiatives on service and user experience, Sam’s Club saw a 300% online growth since 2016. It is estimated that online sales will account for 13 – 15% of total revenue by end of this year when the 40 more stores are opened.
Membership of Sam’s Club China costs US$36 per annum, raised from US$23 in 2016. Premium memberships available at US$100 per year. An average Sam’s Club provides at least 1,500 parking spaces for its members, with a shopping area of 20,000 square meters.
IGD Asia newsletter