After Beijing’s food-safety warning, will Sam’s Club slow its China expansion?
Firm makes leadership changes but might have to prioritise supply chain shortcomings after Beijing’s ‘accountability interview’
Walmart (China) Investment, which controls the membership-only retailer, made changes to its upper management on June 15, the same day the State Administration for Market Regulation conducted an “accountability interview” telling the company to “prioritise food safety” and “strictly fulfil social corporate responsibilities”.
Muk Sook Yee stepped down as chairman and legal representative and was replaced by Liu Peng, a former vice-president of Alibaba Group Holding, according to a registration update on Tianyancha, China’s corporate information provider.
Two days later, the company said that Zhang Qing, chief merchandising officer of Sam’s Club China, resigned for personal reasons and would step down at the end of June.
The reshuffle drew wide market attention, as Sam’s Club is often regarded as an example of foreign firms succeeding in China’s competitive environment. The company opened 10 new stores on the mainland in 2025, bringing its total to 63 nationwide.
“For Sam’s Club, restoring its impaired brand credibility is the top priority,” said Fu Yifu, a special research fellow at Su Merchants Bank in Nanjing, capital of east China’s Jiangsu province. “Recurring food safety incidents have undermined trust among its core middle-class customers, which directly impacts membership renewal rates and user loyalty.”
Sustained strict oversight would compel the company to slow its expansion pace, Fu said.