How Christina Zhu turned Sam's Club into Walmart's unlikely growth engine in China

Christina Zhu, who leads Walmart's operations in China, recalls a time when choice was limited for Chinese consumers. Reflecting on her childhood, she noted how her parents would rise at 4:30 a.m. on Sundays to visit the wet market, where bargaining was essential and the quality of produce was unpredictable. "Today, Chinese shoppers are probably the group with the most choices in the world," Zhu remarked during her address at the Fortune Leaders Forum in Macau in September, adding that they have become increasingly discerning customers.

Navigating the escalating expectations of these consumers has become a pivotal challenge for retailers in China, a challenge that Walmart has managed effectively. The company made its entry into China in 1996 with a Supercenter and a Sam's Club in Shenzhen. Now, three decades later, the U.S. retailer continues to prosper in the world’s second-largest economy, even as numerous foreign brands face difficulties.

While China accounts for only 3% of Walmart's overall business, it is experiencing substantial growth, with sales reaching $24.6 billion in the most recent fiscal year, a remarkable 19.3% increase. For the last quarter, sales surged by 20.7%, significantly outpacing the company's overall growth rate of 5.9%.

These statistics become even more significant amidst China's ongoing consumer spending slump. In the first eight months of the year, retail sales of consumer goods in China rose by just 1.1%, a notable decrease from the 4.6% growth observed during the same timeframe in 2025, and only rose by 0.4% year over year in August. Economic pressures, including high unemployment and a crisis in the real estate sector, continue to dampen spending.

Walmart has excelled in overcoming this downturn by addressing the needs of the fastidious Chinese consumer, offering both exceptional convenience—characterized by rapid delivery options—and a unique in-store shopping experience that has turned stores into sought-after holiday destinations for local shoppers.

Sam's Club: The Secret Sauce

Entering the Sam's Club located in Shenzhen's Qianhai district is akin to stepping into one of its American counterparts, complete with high ceilings and shelves filled with bulk items. However, the offerings include distinct local products, such as mooncake gift boxes and abalone for the Mid-Autumn Festival, instead of standard American products like mac and cheese or hot dogs.

Walmart's big-box membership warehouses serve as the principal growth catalyst in China. Sam's Club provides approximately 70% of Walmart's revenue in China, according to estimates from Fitch Ratings senior director Cathy Chao, and the business has expanded its locations from 15 clubs in 2016 to 67 by May.

"Sam's Club is really the secret sauce to everything," asserted Cameron Johnson, a senior partner at Tidal Wave Solutions. "People appreciate the cost savings, while also experiencing a premium and curated shopping environment."

As of June, Sam's Club boasts 10.7 million members in China, each paying at least 260 yuan ($39) annually for a basic membership. "Sam's Club is positioned very clearly: We serve upper-middle-class families in Chinese cities," Zhu stated. "We think of ourselves less as a retailer, less as a channel … We are the buying agents for members."

During major holiday seasons, such as Chinese New Year, customers at the Shenzhen location frequently wait over an hour to enter. The clubs have also attracted tourists from Hong Kong, a territory historically associated with outbound shopping. Visitors cross the border to stock up on items like roast chicken, toilet paper, and large bottles of laundry detergent, which are often unavailable in Hong Kong.

In 2023, travel agencies in Hong Kong started offering package tours that included visits to the Sam's Club in Shenzhen and its rival, Costco. These tours combined dining and karaoke on the first day, followed by a shopping trip on the second, with arrangements made for transporting acquired items back across the border. The current cost for a round-trip car service to and from the Qianhai Sam's Club is 540 Hong Kong dollars ($69) according to the travel platform Klook.

Digital-First Strategy and Lightning-Fast Delivery

Walmart's journey in China has not always been straightforward. Since 2016, the retailer has shuttered underperforming locations while prioritizing the expansion of its Sam's Club and digital offerings. Interestingly, Walmart is now generating more revenue than it did in 2019, when its presence in China was at its peak.

Much of the resurgence in Walmart's China operations can be attributed to Zhu's leadership. In May 2020, Zhu transitioned to her role as president and CEO of Walmart China, marking her as the first woman and first native Chinese individual to hold this esteemed position.

Throughout her tenure, placing Walmart China on a digital-first trajectory has been her foremost objective. The stores are utilized as fulfillment centers, with Sam's Club positioned at the core of a "cloud warehouse" network capable of delivering groceries to consumers who reside away from a store.

In markets outside of China, "convenience" might entail receiving an order within a three-day timeframe. However, for Chinese consumers, this expectation is dramatically reduced to a mere 30 minutes. Former Walmart CEO Doug McMillon noted last year that 80% of orders in China are delivered within one hour. While a customer in a Western country might accept a 30-minute commute to a store, Zhu emphasizes that Chinese shoppers anticipate no more than an eight-minute walk.

Keeping the Foreign Halo Alive

In the context of challenging market conditions and fierce competition from domestic brands, many foreign brands are grappling with declining performance. Companies such as Starbucks and Nike have lost market share to competitors like Luckin Coffee and Anta Sports.

Contrarily, Walmart has managed to "maintain its foreign halo," according to Johnson, largely due to its rigorous food safety and quality control measures, as well as its adept customization of offerings. "They've localized the marketing, the digitization, the supply chains, but they've retained their American-style service standards," he remarked. For instance, Walmart China has adjusted portion sizes to accommodate the smaller appetites prevalent in many households.

Furthermore, the intense price competition—referred to as neijuan, or "involution"—has worked to Walmart's advantage. This phenomenon has compelled the retailer to either close or renovate underperforming stores and accelerate the digitization of operations to sustain customer engagement.

When reflecting on why Walmart has thrived while other foreign brands falter, Zhu aptly recast Sam Walton's famous principle: "I only have one boss, and my boss is the Chinese customer."

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This article appears in the October/November 2026: Asia issue of Fortune.