Walmart opens third Sam's Club in Beijing

Walmart Inc's high-end membership store Sam's Club opened its third outlet in Shunyi district of Beijing on Thursday, as part of its expansion efforts to open 40 stores by 2020.

It is the 24th Sam's Club store in the country. The new store, located at the center of the more affluent residential community in Shunyi district, was build with interactive experiences including Sam's kitchen, allowing chefs to showcase the cooking process based on food products available in store.

Walmart has introduced the membership format in the country since 1996 in Shenzhen and now has about two million members nationwide.

Last year, the retailer's revenue grew 8 percent year-on-year despite its small proportion of the overall market.

Sam's Club's executives said earlier in an interview that it is the best timing for membership business model to flourish in China, proven by strong growth in consumer's willingness to purchase membership in music applications or retailing brands.

Andrew Miles, president of Sam's Club China, said the club aims to serve middle-and-high-end income families in China, offering seamless online-and-offline services to meet member families' various consumption needs.

The store offers both individual and business memberships and provides delivery services through its website, online application and partnership with JD. Sam's Club focuses on increasing the coverage and efficiency of its one-hour delivery service, which it operates through an alliance with delivery firm Dada-JD Daojia. The delivery service mainly covers high-frequency merchandizes including fresh food, maternity and baby products. In Beijing for example, it is expected to cover members residing within the fifth ring area.

In addition to its current 260 yuan ($38) membership fee, Sam's Club has introduced a 680 yuan membership that offers high-end family services such as dental care at private clinics.

United States retailer Costco, which also has members-only model, is reportedly opening its first mainland store in Shanghai soon.