Walmart(US:WMT) Sou Hu Cai Jing·2025-10-28 09:13Core Viewpoint - Walmart China has appointed Liu Peng as the president of Sam's Club, highlighting the trend of combining traditional retail giants with internet talent to address growth and reputation challenges in a competitive membership retail market [1][3]. Group 1: Strategic Context - The leadership change at Sam's Club coincides with a critical phase in its business development, as the Chinese membership retail market transitions from a blue ocean to a red ocean competition [3]. - The market is seeing intensified competition, with Costco rapidly expanding into second-tier cities, and local brands like Yonghui also gaining traction [3]. - In 2024, the sales scale of over 10,000 chain supermarkets in China is expected to exceed 300 billion yuan, but growth is slowing, indicating a shift to stock competition [3]. Group 2: Internal Dynamics - Sam's Club is currently balancing between "scale expansion and quality improvement," being a key driver of Walmart China's overall performance, with sales expected to surpass 100 billion yuan in 2024, accounting for nearly two-thirds of Walmart China's total revenue [3][5]. - As of now, Sam's Club has nearly 60 stores in China, with plans to add five more by the end of the year, but rapid expansion has led to supply chain management pressures and fluctuations in member experience [5]. Group 3: Liu Peng's Background - Liu Peng brings a unique combination of internet and traditional retail experience, having held various senior positions at Alibaba, which equips him with a comprehensive understanding of both digital operations and supply chain management [7]. - His experience in traditional retail, coupled with his digital expertise, positions him well to address the challenges faced by Sam's Club [7]. Group 4: Industry Trends - The retail industry is undergoing a transformation from "scale-driven" to "efficiency-driven," with a pressing need for digital capabilities as instant retail reshapes consumer behavior [9]. - The rise of instant retail indicates that competition is no longer solely about store numbers and locations, but rather about digital capabilities, user operation efficiency, and supply chain responsiveness [9]. Group 5: Challenges Ahead - Sam's Club faces challenges such as weakened product differentiation and increased complaints regarding member experience, with a 22% year-on-year increase in complaints reported in 2024 [13]. - Liu Peng's global supply chain resources from his time at Alibaba may help introduce exclusive overseas brands to enhance product differentiation [13]. - The company is also exploring a "local product upgrade plan," aiming to increase the proportion of local products to 45% by 2024, which could be crucial for its strategy [13]. Group 6: Future Outlook - The integration of Liu Peng's internet efficiency with Sam's Club's supply chain expertise is seen as a critical test for the company's future in the Chinese market [14]. - The success of this integration will not only determine Sam's Club's market position but also provide a new model for the retail industry on blending traditional and internet approaches [14].