Walmart China vows tighter food safety grip

Walmart China will significantly strengthen food safety and compliance controls, the retail giant said after China's top market regulator summoned its local membership retail arm Sam's Club China over repeated food safety violations.

The undertaking by Walmart China followed an official regulatory interview conducted by the State Administration for Market Regulation, which said it had uncovered food safety issues over an extended period across both Sam's Club physical stores and its e-commerce channels.

Regulators instructed Walmart China to strictly comply with China's food safety law as well as regulations governing chain retailers and online food sales operators, while strengthening supply chain oversight, risk control systems, and corporate accountability mechanisms to better safeguard consumer health.

In response, Walmart China said it "fully acknowledges, deeply reflects upon, and sincerely accepts" the regulator's instructions, adding that it has issued a formal apology to members for any inconvenience caused. The company said it has launched a senior management-led task force to conduct a full internal inspection and a rectification campaign spanning its operations.

Walmart China also pledged to reinforce food safety management across the entire value chain, enhance end-to-end quality control systems, and ensure strict compliance with all applicable laws and regulatory requirements. It further stated it would regularly report progress to authorities and "willingly accept public supervision", signaling a commitment to increased regulatory transparency.

The regulatory intervention comes amid a series of reported food safety incidents linked to Sam's Club China. Among the widely reported cases, a consumer in Wuhan, Hubei province, alleged that Thai coconuts purchased at Sam's Club showed purplish flesh and cloudy coconut water. The consumer suspected improper storage conditions or product deterioration.

Data from Black Cat, a consumer complaint platform under Sina, show that the retailer has so far accumulated about as many as 15,000 consumer complaints, with a significant proportion related to food safety and product quality issues.

Recently, sales of near-expiry food products both in-store and online at Sam's Club sparked public outcry. Consumers reported receiving vegetable salads via Sam's Club delivery that had fewer than 24 hours remaining before expiration. At the time, customer service responded: "If you do not wish to receive near-expiry items, you need to leave a note in your order saying 'No near-expiry products'."

The brand has also faced criticism over its shifting product strategy. Last year, consumers questioned the introduction of mass-market snack products such as Orion pies and Panpan walnut vanilla puffs — items widely available in ordinary supermarkets — arguing that they were inconsistent with Sam's Club's positioning as a premium, curated membership retailer.

Even so, Sam's Club remains a key growth driver for Walmart China as the company continues expanding its membership retail model in the country.

The membership warehouse chain has opened 10 new stores over the past year and plans at least 14 additional locations in 2026. As of April 30, Walmart operated 278 Walmart stores in China, while Sam's Club had expanded to 67 stores.

According to the China Chain Store and Franchise Association, Walmart China reported sales of 195.86 billion yuan ($28.9 billion) in 2025, achieving sustained double-digit revenue growth. Sam's Club China also saw strong performance last year, with full-year sales surpassing 140 billion yuan and a paid membership base exceeding 10 million for the first time.

But despite strong growth, Sam's Club China has faced increasing scrutiny over its ability to maintain consistent product quality amid rapid expansion. Some posts on social media platform RedNote have also involved speculation over food safety concerns after last year's change of senior management roles.

Jason Yu, general manager at CTR Market Research, said that attributing recent issues solely to leadership changes or corporate restructuring is overly simplistic.

Yu said: "For a retail enterprise, the root cause invariably lies in the comprehensiveness of its end-to-end quality control system.

"The more stores it opens, the harder it becomes to rely exclusively on niche, small-batch production regions or a single tier of premium suppliers to meet nationwide demand."

wangzhuoqiong@chinadaily.com.cn