Retail in China is one of the most dynamic in the world. According to Statista data, total retail sales of consumer goods reached 48.8 trillion yuan in 2024, the vast majority of which were concentrated in urban areas. This figure reflects not only the magnitude of the market but also the relevance of changing consumer shopping habits in China.

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The membership club format has begun to take center stage. Both Sam’s Club, a Walmart subsidiary, and Costco, one of the American retail giants, are betting on this model in China to attract an increasingly demanding consumer with high purchasing power and interest in differentiated experiences.

How many stores do Sam’s Club and Costco have in China?

According to the Retail chains in China report (Statista), Sam’s Club closed 2024 with 51 stores in the country, located in major first-tier and “new first-tier” cities. This reflects a strategy focused on urban areas with high population density and middle- to high-income consumers.

For its part, Costco currently operates 7 branches in China, far fewer than its competitor, although with a focus on quality, imports, and competitive pricing. The difference in store count is notable, but Costco has opted for more gradual and selective growth.

This store leadership positions Sam’s Club as the benchmark for membership clubs in China, while Costco seeks to establish itself as a premium alternative.

What is the profile of membership club consumers in China?

Chinese consumers who choose membership clubs mostly belong to the urban upper-middle class. This segment seeks imported products, more convenient shopping experiences, and the assurance of competitive prices.

In membership clubs like Sam’s Club and Costco, customers purchase not only essential goods but also exclusive products, imports, and bulk merchandise, which is attractive to families and high-income shoppers.

The membership format in China has become a symbol of status and trust in quality. This explains why these clubs have become an aspirational space within retail.

Walmart and Sam’s Club expansion in China

Walmart’s backing is key to Sam’s Club’s expansion in China. Walmart has been operating in the Asian country for over two decades and has used its logistics and retail experience to strengthen the presence of its membership subsidiary.

The strategy has been clear: expansion in major cities, integration of digital channels, and strengthening of the supply chain. In contrast to Costco’s more conservative approach, Sam’s Club benefits from Walmart’s infrastructure and financial muscle to rapidly expand its store network.

This makes Sam’s Club a direct competitor not only to Costco but also to local premium supermarkets and other emerging formats like Freshippo (Alibaba).

What are the differences between Sam’s Club and Costco in their strategy in China?

Although both follow the membership model, their strategies show key differences:

• Sam’s Club (Walmart): rapid expansion with 51 stores; focus on major cities; wide variety of imported and local products; strong e-commerce integration.
• Costco: just 7 branches, but with great success at store openings (its first launches drew long lines); focuses on a more limited assortment, aggressive pricing, and exclusive products.

Both aim to attract the upper-middle class, but while Sam’s Club prioritizes coverage and reach, Costco seeks to build loyalty through shopping experience and competitive prices.

Membership clubs in Chinese retail

The rise of Sam’s Club and Costco confirms that membership clubs are becoming one of the most successful retail formats in China. This model meets the desire for exclusivity and product trust while offering price benefits through volume purchasing.

The total supermarket and hypermarket market in China surpassed USD 450 billion in 2023, although it is on a downward trend. In contrast, the membership segment is growing, driven by consumers who prefer premium experiences and added services.

Additionally, these clubs are positioning themselves as loyalty spaces: consumers pay to belong, which strengthens their relationship with the brand and generates a steady revenue stream.

Projections indicate that the format will continue growing over the next decade. Sam’s Club aims to consolidate its leadership in store count, while Costco plans to expand into more first-tier cities and leverage its global reputation.

The challenge for both will be adapting to an increasingly digital consumer who demands integrated experiences. Online commerce and ultra-fast logistics will become decisive factors in their competitiveness against other Chinese retail players like Hema (Alibaba) or Yonghui.

In this scenario, Walmart has an initial advantage thanks to Sam’s Club’s accelerated expansion, but Costco could capitalize on the prestige of its competitive pricing and curated assortment model to stand out.

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