Sam’s Club, the membership warehouse subsidiary of Walmart China, is entering a new chapter as it continues expanding across the country while facing mounting scrutiny over food safety and other operational issues.
The retailer opened its Zhangjiagang location on October 20, marking its third store in a county-level city after Kunshan and Jinjiang and bringing its total store count in China to 58. However, recent media reports highlighting food safety incidents have led to penalties from market regulators, underscoring ongoing challenges for the brand.
In response to these pressures, Walmart China on Monday announced the appointment of Liu Peng as President of the Sam’s Club format, effective immediately. Liu will report directly to Christina Zhu, President and CEO of Walmart China. Jane Ewing, who has served as Acting President, will conclude her assignment at the end of the year and return to Walmart International.
Liu brings extensive experience across China’s retail and internet sectors, having held leadership roles at Goodbaby China, Media Markt China, Suning Appliance, and Haier Group, with responsibilities spanning procurement, marketing, and operations. Analysts say his appointment signals Walmart China’s intent to strengthen operational oversight and drive strategic growth amid a competitive retail environment.
Liu Peng
Walmart China highlighted Liu’s more than 20 years of experience across China’s retail and internet sectors, spanning traditional retail, cross-border e-commerce, and brand entrepreneurship. At Alibaba, he led Tmall Global and the import/export business, gaining deep experience in introducing international products and managing supply chains.
Liu has repeatedly emphasized that supply chain depth is the core competitive advantage in cross-border e-commerce. In a 2020 interview, he illustrated the complex journey of a bottle of French liquor, from overseas warehouse storage, freight, customs clearance, to last-mile delivery. He stressed that the consumer’s simple click tests the platform’s B-end supply chain, financial systems, and C-end service capabilities.
Under Liu’s leadership, Alibaba built extensive bonded and overseas warehouse networks integrated with Cainiao logistics, payment systems, and data analytics to streamline cross-border fulfillment. The approach reduced costs and lowered entry barriers for overseas brands entering China.
Liu has also promoted a user-value-focused product strategy. In 2023, he noted, “Price is a basic need; value is an inner desire. Only when a brand plants the seed in customers’ hearts can it achieve conversion at the expected price point.” His philosophy aligns with Sam’s Club’s “members first” proposition.
The “membership e-commerce” model Liu championed at Alibaba resonates with Sam’s Club’s retail philosophy: long-term trust with members through consistent delivery of high-value products and services.
Liu assumes leadership as Sam’s Club China expands rapidly and navigates a series of high-profile issues. Recent controversies include product quality, delivery disputes, and regulatory fines.
On October 14, a Shanghai consumer reported finding a foreign object in a date-and-walnut cake. Delivery safety has also drawn scrutiny, with netizens highlighting overloaded electric vehicles. Sam’s Club said it is promoting tricycles and four-wheeled replacements but did not provide a clear timeline.
Regulators fined Sam’s Club in September 2025 for selling substandard children’s products, including scooters and bedding sets, citing packaging and material quality issues.
These incidents follow the “Orion Pie” controversy earlier in 2025. Sam’s Club launched a low-sugar, high-cocoa pie, priced at 49.9 yuan for 48 pieces, which drew criticism over ingredients and perceived value. Concurrently, over 20 popular exclusive products were removed, replaced with mainstream items or private-label offerings, prompting consumer frustration.
Analysts note that rapid expansion and hiring from traditional retail backgrounds may have contributed to these issues. A “shelf-space-first” approach prioritizes maximizing brand representation over delivering exceptional consumer value—a strategy that works in supermarkets but may clash with the expectations of membership-based retail.
Despite lacking traditional retail experience, Liu’s e-commerce background may offer advantages. Membership stores depend on long-term trust and high-value offerings; generic, shelf-filling strategies risk eroding member loyalty. Liu’s expertise in supply chain integration, global sourcing, and omnichannel operations positions him to recalibrate Sam’s Club China’s product strategy while leveraging Walmart’s global supply chain.
With nearly 60 stores in China and e-commerce accounting for over half of sales, Sam’s Club is navigating an inflection point. Liu’s leadership could drive improved product offerings, stronger supply chain management, and a digital-first approach that balances physical and online operations.
As Sam’s Club China moves to refine its product mix and membership experience, the market will be watching closely to see whether Liu can translate his cross-border and digital retail expertise into tangible improvements in the brick-and-mortar membership sector.
