Walmart China Factsheet

China

About Walmart Inc.

Walmart Inc. was founded by American retail legend Mr. Sam Walton in Arkansas in 1962. Over the past 50 years, the company has served customers and is now the world’s largest private employer and retailer. Walmart was ranked on the top of the Fortune 500 list several times and is among the most recognized global brands.

Walmart Inc. helps people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices. Each week, over 275 million customers and members visit our more than 11,300 stores under 58 banners in 27 countries and eCommerce websites. With fiscal year 2019 revenue of $514.4 billion, Walmart employs over 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity.

In China, as elsewhere, we follow Walmart core values of “Service to the customer”, “Respect for the individual”, “Strive for excellence” and “Act with integrity”, and stick to the Walmart tradition of building our business one store and one customer at a time, so as to fulfill our core mission, and continue to make a difference in the lives of our customers, members and associates.

About Walmart China

China is a market with a vast number of opportunities. We are fully confident about the prospects of the Chinese economy and the Chinese market. Walmart entered the Chinese market and opened its first hypermarket and Sam’s Club in Shenzhen in 1996. Until today Walmart has been operating in China for 20 years with about 100,000 associates.

Currently, Walmart operates a number of formats and banners in China including hypermarket, Sam’s Club and Walmart supermarket. Walmart now has been operating over 400 retail units covering more than 180 cities nationwide; as well as running some 20 distribution centers. Walmart has served seven billion person times since entered China.

Walmart China firmly believes in local sourcing. We have established partnerships with more than seven thousands of suppliers in China. Over 95% of the merchandise in our stores in China is sourced locally.

Walmart is committed to local talent development and diversity, especially the cultivation and full utilization of female staff and executives. 99.9% of Walmart China associates are Chinese nationals. All of Walmart China’s store managers are Chinese. Furthermore, around 66% of Walmart China associates are female and nearly 50% of above-director level associates are female. In 2009, the company established the “Walmart China Women’s Leadership Development Commission” for driving women’s career development. In order to better enhance the capabilities of women leaders, Walmart China established Women’s Leadership Workshops in 2013.

Walmart will continue to increase investment in China and develop both online and offline to provide customers with even better services. Meanwhile, Walmart will continue to upgrade existing stores, invest in food safety and build on strong partnerships with our Chinese suppliers. Walmart expects to create more jobs, makes joint development with Chinese economy and become a trusted corporate citizen in China.

About Walmart China's Business Formats

Walmart China has many different business formats in China, including Walmart Hypermarket, Sam’s Club and Walmart supermarket.

  • Walmart Hypermarket

The Walmart hypermarket store ranges from six thousand to over ten thousand square meters, and offers more than twenty thousand kinds of fresh food, clothes, household appliances, grocery and etc. The Walmart hypermarket provides one-stop shopping experiences for our customers. Meanwhile, Walmart hypermarket attracts customers for the neighboring small retailers and restaurants.

Walmart is not only committed to food safety and high quality, but also to corporate mission “save people money, so they can live better”. Walmart hypermarket launched “Worry Free Prices” commodities in all stores nationwide, which saves customers from the trouble of price comparison. Meanwhile, Walmart hypermarket offers the popular commodity combinations and continual improvement of commodity display through market research while continually upgrading stores in order to enhance customers’ shopping experience, meet customers’ demands, and promote sales growth.

  • Sam's Club

Sam’s Club is a chain of high end membership-only clubs under Walmart Family, which is the Top 500 global company—Walmart Inc., named by the retail giant Mr. Sam Walton, founder of Walmart. Since the first Sam’s Club opened in Midwest City in Oklahoma State in April of 1983, Sam’s Club has a history over 30 years. At the beginning of 90’s, Sam’s Club starts to enter international market and has become one of the largest membership clubs around the world. At the present, Sam’s Club has developed 800 chain clubs globally and provides superior service to over 50 million individual members and business members. The first Sam’s Club in China was opened in Shenzhen on August 12, 1996. So far, Sam’s Club has developed a total of 23 clubs in China which are located in Beijing, Shanghai, Shenzhen, Guangzhou, Fuzhou, Dalian, Hangzhou, Suzhou, Wuhan, Changzhou, Zhuhai, Tianjin, Xiamen, Nanjing, Changsha, Nanchang , Chengdu, Shenyang and Nantong. In the future, Sam’s Club will continue to expand investment in China, bringing quality life to more and more Chinese families.

A Sam's Club has an average shopping area of 20,000 square meters and offers bulk groceries and general merchandise. To satisfy customers’ needs for higher quality, Sam’s Club only provides either the best quality product in the category or the best-selling brand. The Club offers 4,000 high quality-to-price ratio items, including categories such as fresh, groceries, household appliances, home, apparel and etc. The Club saves customers from the trouble of product comparison, which also saves their time and money. The commodities sold in Sam’s Club usually come in large and simple composite packages, lowering the costs through purchasing in large quantities. Sam’s Club emphasizes on accessibility of the location. The clubs usually provide at least 1,500 parking spaces for its members.

Walmart supermarket

Walmart opened its first smart supermarket at the end of March 2018. Supermarket covers an area of about 1200 square meters, offers more than 8000 SKUs, 7000 of which are available on JD Daojia, and provides delivery as fast as 29 minutes to homes within 2 kilometers of the store. The store also offers “scan & go” to speed up payment. The orders from “scan & go”, self-checkout and JD Daojia account for more than 50% of the total trade volume of the GO day of the store. 

Walmart China's E-commerce Development

  ♦  Starting from the end of 2010, Sam’s Club’s online store(www.samsclub.cn)opened Sam’s Club members online shopping direct delivery service in cities where the Sam’s Club stores are located, including Shenzhen, Beijing, Shanghai, Fuzhou, Guangzhou, Hangzhou, Suzhou, Wuhan, Changzhou and Zhuhai.

  ♦  Starting from October in2012, Sam’s Club’s online store started to provide chilled and frozen foods online, with specific same-day-delivery service in Shenzhen, Guangzhou, Shanghai, Beijing, and Suzhou. In the future, the chilled food direct delivery service will be extended to more areas. It is convenient for our members to buy hundreds of items covering fruit and vegetable, meat, egg, bakery, and the chilled and frozen at Sam’s Club online store.

  ♦  In April 2014, Sam’s Club announced the launch of Sam’s Club App that can be downloaded for free from the web, after the Sam’s Club Weixin account is well recognized among the members. App ordering is more convenient. The Sam’s Club App also helps members easily assess their shopping records, monitor frequently-buy-item list, receive e-newsletter of the latest discounts,; as well as allows customers to apply for membership at the App.

  ♦  In late December 2014, Sam’s Club’s online store launched both Union Pay online payment and Walmart Gift Card online payment. In particular, the newly issued Walmart Gift Card, only with online payment password, will be accepted not only in Walmart hypermarket and Sam’s Club, but also at Sam’s Club’s online store. The new payment services encourage and enhance the convenience and flexibility to members through wider range of payment channels that are available at Sam’s Club’s online store.

  ♦  Walmart (NYSE:WMT), and JD.com (Nasdaq:JD), China’s largest e-commerce company by revenue, announced that they have formed a strategic alliance to better serve consumers across China through a powerful combination of e-commerce and retail. As part of the agreement, Walmart will receive 144,952,250 newly issued JD.com Class A ordinary shares, amounting to approximately 5 percent of total shares outstanding and the companies will partner in several strategic areas.

  ♦  In Oct 2016,after entering into a strategic alliance to expand the breadth and convenience of online shopping options for Chinese consumers, Walmart (NYSE:WMT), the world’s largest retailer and JD.com (Nasdaq:JD), China's largest e-commerce company by revenue, announced a series of exciting new ways for customers to access high quality products from around the world. The efforts, which are launching during the run up to Singles Day on November 11, will also improve logistics and supply chain functions, cross-border ecommerce and online-to-offline (O2O) ecommerce services for consumers across the country.  
1)Exclusive Sam’s Club Flagship Store on JD.com
2)Exclusive Walmart Global Flagship Store on JD Worldwide
3)Connection with JDDJ to Provide 2-Hour Grocery Delivery from Walmart Stores in Select Cities

  ♦  Walmart launched ASDA global flagship store on JD Worldwide on April 12 which is another achievement of strategic cooperation between Walmart and JD. As the transformation of domestic retail market and increasing demand of customers for imported products, Walmart cross-border e-commerce in China will provide China market with more original overseas products by leveraging global supply chain’s advantages and offer Chinese consumers more convenient shopping experience with JD’s platforms and logistic networks.

  ♦  Sam’s Club global shop flagship store was officially launched on JD on May 16 2017 which introduces popular items from Sam’s Clubs US store, with a focus on personal care products, baby supplies and nutritional supplements, most of which are not currently available in Sam’s Clubs in China. With the launch of the Sam’s Club cross-border initiative, Sam’s Club continues to meet members’ increasing demand of cross-border items while enriching Sam’s product lines on JD and complementing Sam’s products in offline stores so as to further enhance the value of the Sam’s China membership.

  ♦  Walmart flagship store was officially launched on JD Mall on May 25 2017. Based on Chinese customers’ shopping habits, Walmart handpicked over 1,700 items that customers need in their daily lives to bring them available in the Walmart flagship store. The 90-day worry-free return service that’s favored by customers is also available online at Walmart’s flagship store on JD.

  ♦  Walmart and JD jointly announced the launch of the first large-scale online/offline promotional campaign “8.8 Shopping Festival” on July 25, 2017. At the same time, JD and Walmart announced that they will continue to mutually share resources of customers, stores and inventory to achieve deeper integration of online platforms and offline stores, adapting to the new trends of retail transformation. The two sides will continue to work together on marketing, service and supply chain during the 8.8 Shopping Festival to convert customer groups of both companies through co-marketing, create online/offline integration by accessing stores with online platforms, share inventory in pilot areas as a pioneer approach, and achieve deeper integration of supply chain and backend technology.

  ♦  The first large-scale online and offline promotional event “8.8 Shopping Festival” jointly launched by Walmart and JD wrapped up on August 8. Within 24 hours of August 8, sales of Walmart Flagship Store, Walmart Global Shop Flagship Store and ASDA Global Shop Flagship Store saw a new record high, with a growth of more than 13 times compared with previous peak day sales. Meanwhile, Walmart’s orders on JD Daojia saw an increase of over 200% compared with July’s average daily orders. JD and Walmart announced to progressively integrate customers, stores and inventory to achieve in-depth integration of online platforms and offline stores so as to adapt to the new trends of retail transformation.

  ♦  Sam’s Club and JD jointly released a report in October 2017 named Insight into Paid Members’ Consumption in China’s Retail Industry and announced the launch of bundle membership package of Sam’s Club and JD PLUS spanning a limited period for the first time, allowing consumers to enjoy benefits of both Sam’s Club and JD PLUS at a discounted price.

  ♦  Walmart Global Shop Flagship Store is celebrating its first anniversary on JD in October 2017 and so is Walmart’s cooperation with JD Daojia. Walmart Global Shop Flagship Store has grown to the store with the fullest categories on JD Worldwide after a year and will add 40,000 new SKUs by the end of this year to enrich its assortment. At the same time, its sales have also been continuously growing. Walmart has also become one of the stores on JD Daojia with the fastest growth speed. Meanwhile, the cooperation of JD Daojia and Walmart has extended to more than 250 stores in over 40 cities currently.

  ♦  Sam’s Club has seen its e-commerce sales increase threefold in China since launching its flagship store on JD.com one year ago. The partnership with China’s leading online retailer has allowed Sam’s club to reach the majority of the nation via JD’s exclusive intelligent supply chain solutions since Sam’s was launched on JD Mall in October 2016. In addition, the online products in Beijing and Shanghai have covered almost all the fresh categories and realized same-day delivery for part of the fresh products.

  ♦  Sam’s Club announced with JD Daojia and launched Sam’s Club on JD Daojia in Shenzhen in April 2018 to carry out in-depth cooperation between two sides. Sam’s becomes the first paid membership seller on JD Daojia. Both sides will give full play to Sam’s high-quality products and brand effect as well as JD Daojia’s high efficient online operation and logistic capabilities to meet the demand of high-end products especially the demand of one-hour delivery of quality fresh. Sam’s cooperation with JD Daojia will be extended to more key cities across the country to enable Sam’s members enjoy more diversified delivery service.

  ♦  Sam’s Club was launched on Shanghai JD Daojia in May 2018, offering about 1,000 products with high frequency purchase and high market penetration rate, covering fresh, mother and baby products, personal care, dried food, as well as popular online leisure snacks. Sam’s will set up multiple club depots in future to enable more members to enjoy the one-hour delivery service which will cover the key areas of Shanghai.

  ♦  Walmart and JD announced in July 2018 that they joined with major suppliers to launch the 8.8 Shopping Festival, a grand online and offline promotion event. Walmart and JD also launched the Three Integration 2.0 Strategy which further upgrades integration of customers, stores and order routing based upon cooperation of last year.

  ♦  Walmart and JD announced in August 2018 that the 8.8 Shopping Festival has created new sales performance records. Since launched on July 19 till August 10, scale of omni-channel sales of 8.8 Shopping Festival has so far reached 10 times of that of last year, and major brands that joined the event achieved double digit sales growth compared with same period of last year. The total sales of Walmart flagship store and Walmart global flagship store on JD platform on August 8 increased by over 800% compared with the highest daily sales record. Nationwide Walmart orders on JDDJ surpassed total orders on the day of August 8 last year within only 1 hour and 14 minutes since the event was kicked off, and the sales on August 8 increased by 500% compared with the same day of last year.

  ♦  Walmart joined with JD, JD Daojia, Tencent to release the 2018 China Retail Omni-channel Integration and Development Report in Beijing, which shared the insight of the process of omni-channel integration among the four benchmark enterprises. The report pointed out that consumers enjoy convenient and quality life and customized service as online and offline consumption border gradually blurred given the retail mode becomes diversified and rapid iterating. The omni-channel mode formed by cooperation and integration gradually breaks down boundaries between online and offline, customer groups, supply chain, efficiency, platforms and regions, enabling customers to shop anytime and anywhere in any way they like.

  ♦  Walmart gift card completed omni-channel upgrading in December 2018. Walmart gift card is available in Walmart flagship store on JD.com and JD Daojia platform which realizes the online and offline payment integration. Customers are able to use Walmart gift card in more than 400 stores across the country and designated online channels.

  ♦  Walmart China formally launched Omega 8 in January 2019, an innovation platform that jointly develop with Chinese startups. Walmart China will cooperate with more innovation startups to explore the application of cutting-edge technology in retail industry by leveraging Omega 8 to provide technology solutions to address the pain points in retail so as to better serve customers. 15 POC have been carried out since the launch of Omega 8.