Walmart(US:WMT) 3 6 Ke·2025-10-28 01:16Core Viewpoint - Walmart China has appointed Liu Peng as the president of Sam's Club, indicating a strategic move to enhance its operations and address existing challenges in product selection and quality [1][3]. Group 1: Leadership Changes - Liu Peng, previously with Alibaba, is expected to leverage his international perspective and deep understanding of global supply chains to lead Sam's Club in China [1][3]. - The appointment is seen as a significant step in Walmart's ongoing investment in China and its strategic upgrade [3]. Group 2: Challenges Faced by Sam's Club - Sam's Club has faced increasing issues related to product selection, quality, and food safety, leading to a "crisis of trust" among consumers [3][12]. - Recent incidents include the sale of non-compliant products, such as a defective scooter and children's items, resulting in administrative penalties [6][9]. - Consumer complaints have surged, with over 12,000 complaints recorded on a complaint platform, highlighting growing dissatisfaction [10]. Group 3: Consumer Expectations and Market Dynamics - The shift in product offerings, including the introduction of mainstream brands, has led to a dilution of Sam's Club's brand identity as a premium retailer [12][14]. - Members expect a curated selection of high-quality products, and the introduction of common brands has caused discontent among loyal customers [16][21]. - The economic environment is shifting, with middle-income consumers increasingly prioritizing value for money, which poses a challenge for Sam's Club to maintain its premium positioning [22][23]. Group 4: Expansion and Market Strategy - Sam's Club continues to expand, recently opening its 58th store in Zhangjiagang, indicating a focus on high-income county markets [17][19]. - The store's opening reflects strong demand for quality retail in these areas, aligning with the profile of middle-class consumers [19][21]. - However, the competitive landscape is intensifying, with other retailers also targeting these emerging markets, necessitating a reevaluation of Sam's Club's strategies [26][27].