Core Insights - Walmart China has appointed Liu Peng as the new president of Sam's Club, effective immediately, following the departure of Jane Ewing, who served in an interim capacity for less than a year [2][3] - Sam's Club has faced challenges this year, including product quality controversies and increasing competition from rivals like Hema and Ole [2][4] - Liu Peng's primary challenges will be to rebuild trust and restore the brand's core advantages amid these pressures [2][3] Leadership Transition - Liu Peng brings extensive experience from Alibaba, where he held senior positions in Tmall International and import/export operations [3] - Jane Ewing's tenure as acting president was brief, and she will return to Walmart's international division by the end of the year [3] - The leadership change is seen as a move to enhance e-commerce capabilities and address online competition [3] Market Position and Challenges - Sam's Club has positioned itself as a "selected" retailer, focusing on high-quality products and competitive pricing, which has allowed it to achieve growth despite overall retail sector pressures [5] - In the first half of the fiscal year 2026, Walmart China's net sales reached $12.365 billion, a 25.1% year-on-year increase, with Sam's Club showing strong growth [5] - However, the retail landscape in China is becoming increasingly competitive, with local brands like Hema and Ole gaining market share and challenging Sam's Club's traditional advantages [6] Consumer Trust Issues - Sam's Club has faced a trust crisis due to controversies over product quality, including incidents involving popular brands like Holley and Panpan [4][6] - The membership model, which requires annual fees of 260 or 680 yuan, targets middle to high-income consumers who are less price-sensitive [4] Competitive Landscape - Competitors are rapidly innovating and adapting to consumer preferences, with Hema and Ole outperforming Sam's Club in product development and market responsiveness [6] - Sam's Club's larger packaging sizes may not align with the preferences of smaller Chinese households, posing a structural challenge to its business model [6]