Amid Retail Devastation in China, Why is Sam's Club Expanding?

EO: 实体零售业哀鸿遍野 “山姆大叔”沃尔玛为何逆势扩张？

What's different about Sam's Club in China? At the new Zhuhai store, the first thing shoppers will see is a 1.18 million yuan BMW 740 for sale.

It is this kind of crowd a promoter of Chinese consumption boom. Consumption upgrade trend has been quite common, appear in almost all types of FMCG, from infant formula to liquid milk, from toothpaste to skin care products, Chinese consumers around the world to find their favorite brands, and even set off for overseas the toilet lid, rice cookers craze.

And targeting high-end target groups corresponds, from April 28 start, Sam's Club annual fee for two decades unchanged, rising from 150 yuan to 260 yuan, or up to 73%. "Improving our membership fee is a process of positioning themselves right, Sam the target audience is not all, we want to provide a good shopping experience for the audience. In other words, to raise the dues can be more precise focus of our target audience, they do not because contributions raise and stop renewals. "Wente said, Sam's currently has over 1.6 million members in China. Continued overall card rate remained at 70%, which continued the card rate Class A and Class B members of more than 85%, "This is a very healthy indicator." "About three or four years ago, we realized that Sam this format in China development opportunities may be larger than what we see, so from that time, we very much want to make a more pure Sam membership format. we want to serve our community members were very clear understanding, reducing Sam store category of goods, optimize procurement team to ensure high quality of the procurement of goods. At the same time, we enhance the quality of goods, supply chain management and control, as well as the construction of Sam's Club itself has done a great investment. "Wente said, with the the consumer market, the growing internationalization of higher quality goods and services to members experience requirements, self-built mall music world to build Sam's Club to provide a better shopping experience.

"Shopping experience" Perhaps it is Wal-Mart business ideas adjusted keywords. Sam's Club stores in the past because the positioning Warehouse clubs will choose to stay away from the city center area of ​​the shop, now combined with the shopping center format change will inevitably have an impact on store location, and even mapped out inside Wal-Mart retail empire from the top business ideas change - when is closer to the consumer, online and offline to be better linkage.