Maidelong has nationwide supply chain network serving 200,000 corporate members in 64 cities
Membership stores have continued gaining traction in the Chinese retail market as middle-income consumers increasingly prioritize product quality and healthy lifestyles.
Maidelong, formerly known as Metro China, is accelerating its retail expansion this year, increasing its presence in lower-tier cities while enhancing supply chains and private-label product offerings, said Xu Shaochuan, executive director, chairman and president of the company's supply chain.
In an interview with China Daily, Xu said the retailer is establishing its first distribution center and opening its first store in China's island province Hainan, along with its first store in Wenzhou, Zhejiang province.
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"We have quickened our pace in market penetration while strengthening our supply chain to support this expansion," Xu said.
Maidelong has built a nationwide supply chain network that serves 200,000 corporate members in 64 cities. It currently operates 100 stores across 60 cities, catering to over 20 million households.
As competition intensifies in China's membership-based retail market, differentiation through product assortment is becoming a key strategy.
Xu said Maidelong aims to increase the share of its private-label line — M-Select and M-Basic — to 50 percent of its merchandise mix — up from the current 40 percent. M-select is a private brand of globally-sourced products for consumers; Mbasic is a private brand supplying products to B2B enterprise clients.
"The retail industry still faces a serious challenge of product homogenization," he said.
In a bid to enhance its imported food offerings, Maidelong is currently co-hosting the Italian Food Festival with the Italian Trade Agency. The festival features nine major categories of Italian cuisine, covering over 60 subcategories, including iconic products such as cheeses, hams, olive oil, wines and coffee.
"We have specifically selected products with geographical indications and regional certifications to bring authentic Italian flavors to China," Xu said. "This festival is an extension of our European food import and procurement strategy."
Looking ahead, Maidelong plans to expand this initiative to other countries, holding rotating food festivals to introduce more international flavors to Chinese consumers, said the executive.
"Imported goods are a key part of Maidelong's business," Xu said. "One of our top priorities this year is to expand our imported food portfolio to boost domestic demand and enhance our competitive edge."
In November, the company will introduce over 30 new products at the China International Import Expo this year.
"Enhancing both product offerings and market penetration is a priority for all membership store operators," said Jason Yu, general manager of CTR Market Research.
"But for Maidelong, developing private-label brands tailored to young, middle-income Chinese families seems even more crucial."
For membership stores, growth is no longer just about expanding market coverage. Industry experts emphasize the importance of leveraging core strengths while continuously innovating and optimizing offerings, according to Kantar Worldpanel China, a unit of CTR.
This includes introducing exclusive products, enhancing experiential services and integrating supply chain capabilities to create competitive advantages.
By doing so, retailers can more effectively attract and retain target consumers across different city tiers, fostering long-term sustainable growth, according to Kantar.
Maidelong is also ramping up its digital transformation. Xu said the company aims to increase online sales, which currently account for 30 percent of revenue, as its e-commerce grows at a faster pace than offline retail.
As part of this effort, Maidelong has launched its first warehouse nearby model in Changchun, Jilin province, as a trial, to speed up delivery efficiency.
The company operates two digital platforms: Maifuli, a B2B platform, and a B2C platform — Maidelong — developed through Dmall, a sibling unit under its parent company, Wumart Group.
Xu added that Maidelong is integrating AI-driven tools, including DeepSeek big models, to enhance digital operations, improve efficiency and drive business performance.
In 2024, membership stores in China experienced strong growth momentum, with annual sales increasing by more than 20 percent year-on-year, according to Kantar Worldpanel.
International retailers, led by Sam's Club, have expanded rapidly in the Chinese market, leveraging their mature supply chains, high-value private-label products and strong member loyalty to establish a dominant position.
Data from Kantar Worldpanel show that in 2024, Sam's Club's penetration rate surpassed 7 percent, marking a 2 percentage point increase from the previous year. The retailer plans to continue expanding into smaller city markets this year.
Walmart Inc, parent company of Sam's Club, reported strong fourth-quarter results this month, with robust revenue and operating income growth. For the full fiscal year, Walmart's revenue reached $681 billion, up 5.1 percent year-on-year.
Walmart China net sales reached $5.1 billlion in the fourth quarter, up 27.7 percent year-on-year. In China, Walmart's e-commerce sales surged 34 percent year-on-year during the fourth quarter, of which Sam's Club operations in the country contributed a major portion.
"For the quarter and the year, we're pleased with our performance during the holiday season across the world," said Walmart CEO Douglas McMillon. "We performed well in the US, Mexico, Canada and China."
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He said Sam's Club in China just wrapped up a strong Spring Festival operation.
John David Rainey, Walmart's executive vice-president and CFO, said China is a key growth market. "Our business in China continued to grow at a double-digit pace, driven by the strength of Sam's Club and e-commerce," he said.
As of 2024, Walmart operated 283 Walmart stores and 53 Sam's Club stores in China. In the fiscal year, the company opened six new stores, including four in the fourth quarter.
In addition, domestic membership store brands are also actively growing their presence.
M Club, a subsidiary of RT-Mart, operated nine stores across the country in 2024 and plans to focus on expanding in Jiangsu province in 2025 to deepen its market penetration.
Kantar Worldpanel data showed that M Club venues are the most dynamic segment within RT-Mart's business portfolio, with particularly strong sales growth in 2024.
