Walmart's China business generated $24.6 billion in sales in its past fiscal year, a 19.3% jump, with Sam's Club serving as the retailer's primary growth engine in the world's second-largest economy. China represents 3% of Walmart's overall business, but sales there grew 20.7% last quarter, far outpacing the 5.9% reported by the company as a whole, even as Chinese consumer-goods retail sales grew just 1.1% in the first eight months of the year. Sam's Clubs contribute about 70% of Walmart's revenue in China, according to Fitch Ratings senior director Cathy Chao, and the warehouse business has expanded from 15 clubs in 2016 to 67 in May, with 10.7 million members in China as of June each paying at least 260 yuan per year for a basic membership. Christina Zhu, who became Walmart China president and CEO in May 2020 as the first woman and first native Chinese person to hold the job, has made the business digital-first, with stores doubling as fulfillment centers and a cloud warehouse network delivering groceries in as little as 30 minutes. Walmart entered China in 1996 with a Supercenter and a Sam's Club in Shenzhen and has since closed underperforming stores to focus on Sam's Club and online offerings, now generating more revenue than in 2019 when its China footprint was at its largest.
Walmart Inc.Walmart China sales jumped 19.3% to $24.6B with Sam's Club driving growth, outpacing overall company growth.
