Core Viewpoint - The rapid expansion of Sam's Club's "cloud warehouse" model and its "one-hour express delivery" service has raised concerns about the safety and working conditions of delivery riders, particularly regarding overloading issues [5][20]. Group 1: Expansion of Cloud Warehouses - Sam's Club has opened four new cloud warehouses in various cities, bringing the total number of cloud warehouses close to 500 [5][18]. - The "one-hour express delivery" service relies on a network of cloud warehouses, typically covering a delivery range of 3 to 5 kilometers from the warehouses [8][15]. - The cloud warehouses are designed to serve online orders and are equipped with various storage facilities to accommodate a wide range of products [15][17]. Group 2: Delivery Rider Challenges - Delivery riders face significant pressure to increase their order volume to boost their income, leading to instances of overloading their electric vehicles with heavy goods [6][11]. - The average order weight often exceeds the system's limit of 30 kilograms due to the nature of the products sold, which are typically bulk items [12][11]. - Riders are compensated based on the number of deliveries rather than the weight of the goods, which incentivizes them to take on more orders, exacerbating the overloading issue [12][13]. Group 3: Financial Performance - Walmart China's net sales reached $12.365 billion in the first half of the 2026 fiscal year, reflecting a year-on-year increase of $2.482 billion [19]. - The second quarter saw net sales of $5.786 billion, with a growth rate of 30.8%, and online sales growth reached 39% [19].

Core Insights - The rapid growth of Sam's Club's instant retail business has led to concerns about delivery riders facing overloading issues rather than speeding [1][4] - Sam's Club has opened four new "cloud warehouses" across various cities, enhancing its "one-hour express delivery" service [2][3] - The increase in cloud warehouses has raised questions about the safety and rationality of Sam's delivery methods due to reports of overloaded delivery vehicles [4][6] Group 1: Business Expansion - Sam's Club has been expanding its cloud warehouse network, with at least seven new warehouses added in the past month, bringing the total close to 500 [3][30] - The "express delivery" service is not self-operated but contracted to third-party platforms, which has implications for rider compensation and workload [11][12] - The cloud warehouse model allows Sam's Club to test market demand before opening new physical stores, with a strategy of "warehouse first, store later" [26][31] Group 2: Delivery Challenges - Delivery riders are incentivized to take on more orders to increase their income, leading to a culture of overloading vehicles with heavy goods [5][18] - The average weight limit for deliveries is set at 30 kilograms, but riders often exceed this limit due to operational loopholes [16][20] - Riders report that their income has not significantly increased despite higher order volumes, leading to dissatisfaction and potential safety risks [19][20][35] Group 3: Financial Performance - Walmart China reported a net sales figure of $12.365 billion for the first half of the 2026 fiscal year, with a year-on-year increase of $2.482 billion [34] - The second quarter saw net sales of $5.786 billion, reflecting a growth rate of 30.8%, with online sales growing at a rate of 39% [34][32] - The success of the cloud warehouse and express delivery model in China is being studied for application in other global markets [33]