by ZHAO Xiaojuan

Walmart China is reorganizing its leadership structure as it seeks to rebalance resources between its fast-growing Sam's Club business and its traditional Walmart store business, signaling a new phase in the retailer's China strategy.

The company confirmed on June 17 that ZHANG Qing, chief merchandising officer of Sam's Club China, will leave at the end of June after nearly eight years with the membership retailer. Her departure follows a series of senior leadership changes at Sam's Club China over the past 18 months, as Walmart seeks to sustain the chain's growth while strengthening its traditional store business.

Zhang joined Sam's Club in 2017 and became chief merchandising officer in 2018, overseeing product strategy and procurement. During her tenure, she helped shape the retailer's product-selection strategy, which focused on a limited range of differentiated, high-quality products designed to drive membership renewals and customer loyalty.

Under that approach, Sam's Club expanded rapidly in China, growing from 23 stores at the end of 2018 to 63 locations by June 2026. Online sales also became an increasingly important growth driver, with some stores generating more revenue through digital channels than from in-store purchases, according to people familiar with the business. The expansion has made Sam's Club one of the most successful foreign retail formats in China, standing apart from traditional supermarkets through its membership model and exclusive product offering.

Zhang's departure comes at a sensitive moment for the business. The retailer has faced criticism from some members over changes to its product assortment, including the introduction of more mass-market brands and the removal of certain popular products. Chinese regulators also recently summoned company representatives over a series of food-safety issues involving both physical stores and online operations.

Industry observers say the challenges reflect the growing complexity of managing a membership retailer as it expands beyond China's largest cities.

"As Sam's Club expands into more cities, maintaining the exclusivity that originally attracted members becomes increasingly challenging," said one retail industry executive. "The challenge is no longer simply growth but preserving what made the format successful in the first place."

Zhang's departure follows two other major leadership changes at Sam's Club China. In January 2025, Andrew Miles, the executive widely credited with leading Sam's Club China's transformation and expansion, retired after helping build the retailer into one of Walmart's most successful overseas businesses. Later that year, former Alibaba executive LIU Peng joined Walmart China to lead the Sam's Club business, with a mandate to accelerate business upgrades and digital transformation.

At the same time, Walmart's traditional hypermarket business is moving back into focus.

In an internal memo, Xiaojing Christina Zhu, president and chief executive officer of Walmart China, announced that ZHU Jun, president of Walmart China's store business would assume additional responsibility for the company's real estate division. The move brings store operations and expansion planning under closer coordination as Walmart pushes ahead with store expansion.

Zhu Jun also oversees merchandising for Walmart's store business and has led the development of Marketside, the retailer's private-label fresh-food brand, which has helped strengthen Walmart's competitiveness in China's grocery market.

According to the memo, Walmart China plans to continue expanding both formats, including new Sam's Club stores, fulfillment centers, Walmart hypermarkets and neighborhood stores in more cities across the country.

The organizational changes suggest Walmart is entering a new stage in China, where Sam's Club is no longer the sole focus of growth and the traditional Walmart business is regaining strategic importance. The challenge now is whether the company can sustain Sam's Club's momentum while revitalizing its broader store network.

With both businesses entering a new expansion cycle, management execution — rather than store openings alone — may prove decisive in determining whether Walmart can maintain its position as one of the few foreign retailers still gaining ground in China's fiercely competitive grocery market.