Walmart(US:WMT) Mei Ri Jing Ji Xin Wen·2025-10-22 16:35Core Viewpoint - The recent issues surrounding Sam's Club's delivery practices, particularly the overloaded electric vehicles used by delivery personnel, have sparked public concern regarding safety and have prompted a reevaluation of the company's market strategy in China [3][5]. Group 1: Delivery and Safety Concerns - Reports indicate that Sam's delivery personnel are overloading electric vehicles with goods, raising safety risks during transportation [1][3]. - In response to public outcry, Sam's has announced measures to improve safety, including the introduction of three-wheeled or four-wheeled vehicles for deliveries [3][4]. - The company is facing challenges in balancing rapid expansion with service quality, particularly in its last-mile logistics [3][6]. Group 2: Market Strategy and Competition - Sam's Club is shifting its strategy to penetrate lower-tier cities and urban areas, moving away from its previous focus on affluent suburban customers [3][9]. - The company has been criticized for its product selection, which has led to dissatisfaction among members, indicating potential misalignment with its core customer base [9][10]. - Increased competition from major players like Meituan, Alibaba, and JD.com is intensifying the pressure on Sam's, as these companies are rapidly opening discount stores in key markets [10][11]. Group 3: Financial Performance and Growth - Sam's Club has reported strong growth, with double-digit increases in transaction volume and the opening of new stores, indicating a robust demand for its offerings [7][9]. - The company continues to rely on a membership model and a selective product range to attract middle to high-income consumers, which is crucial for maintaining brand trust [7][9]. - Despite current growth, analysts suggest that Sam's must navigate its expansion carefully to avoid compromising service quality and customer trust [10][11].