While US fast-food giants are dumping their stakes in frustration, American warehouse clubs are seeing real customer rushes.
The winning formula: exclusivity, curated products, fair prices, and ultra-fast delivery.
Details
☕️ A bitter aftertaste: Starbucks is selling 60 percent of its China business to a local investor, and Burger King is also largely giving up control.
- US headquarters are often too slow to keep up with the brutal pace of innovation set by local competitors like Luckin Coffee.
🛒 The club kings: Walmart, by contrast, is seeing the biggest boom in its history with Sam’s Club and plans 10 new openings in China this year alone.
🏷️ Privilege with a price tag: Sam’s Club and Costco filter customers through membership fees. Those who pay get selection, quality, and products you cannot find elsewhere.
📦 Shopping as a theme park: China’s middle class loves the curated assortment and treats the family trip to the giant warehouse as a welcome counterpoint to pure online shopping.
🧱 Hard to copy, even for Alibaba: Local attempts at membership retail have so far failed or remained regionally limited. The model requires discipline, assortment depth, and trust. Things that do not scale easily.
Background
China’s consumer market is under pressure, but it is not dead. Shoppers are spending less, but more deliberately. Warehouse clubs hit that nerve.
Traditional chains with interchangeable offerings are coming under pressure, especially when local players are faster and cheaper.
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