On the evening of November 3, Sam's Club's official social media account issued an urgent apology regarding recent controversies stemming from a major app redesign. Despite the belated response trending online, with promises to "continuously improve product representation and user experience," complaints about "canceling memberships, negative reviews, and demands to fire executives" continue to spread on platforms like Xiaohongshu.
A hands-on review revealed that two core issues—"excessive image retouching" and "hidden product details"—remain unresolved. For instance, the organic cordyceps product page displays polished images of prepared dishes, while customers actually receive dried cordyceps. Similarly, a spicy grilled fish product features five images, with only the last one showing the actual product. Key details like origin and manufacturer information for fresh milk and high-calcium milk are also obscured, requiring in-store verification.
Industry insiders suggest the app controversy is merely a trigger for broader dissatisfaction, compounded by the recent appointment of former Alibaba executive Liu Peng as president of Sam's Club China. However, Sam's insiders deny any connection, stating the app changes began in late August, while Liu joined in late October.
Post-apology, problems persist. On Xiaohongshu, "Sam's membership cancellations" trend as users criticize intrusive pop-up ads and confusing features like "Easy Add-Ons," which mimic other e-commerce platforms. Three major grievances dominate discussions: 1. Severely misleading product images post-August redesign, particularly in fresh produce (e.g., strawberries retouched to appear uniformly large, raw beef depicted as cooked). 2. Buried nutritional and allergy information, posing safety risks. 3. Overcomplicated navigation, frustrating elderly users.
Despite Sam's pledge to optimize images, retouched visuals still dominate listings, with actual product photos relegated to the end. Critical details remain inaccessible without purchase. Some members have escalated complaints to Walmart’s U.S. headquarters, accusing the China team of undermining the membership model’s core values.
The timing coincides with leadership changes: Andrew Miles retired as Sam's China president in January, succeeded briefly by Jane Ewing before Liu Peng’s October appointment. This rapid turnover hints at strategic shifts.
Trust erosion began earlier. In July 2025, members rebelled when 30+ exclusive items were replaced with mass-market brands, sparking backlash over the $37 annual fee’s value. Quality declines further fueled discontent, such as spoiled New Zealand milk sold months before expiry and shrinking product weights (e.g., tissues reduced by 8.2% since 2022).
Supply chain sources reveal stricter 15-20% margin enforcement, pressuring suppliers to cut corners—explaining quality drops. October brought regulatory penalties: a FILA scooter with hazardous packaging and substandard children’s bedding, costing Sam’s over $1,700 in fines.
Financially, Walmart’s Q2 2026 revenue rose 4.8% to $177.4 billion, but operating profit fell 8.2%. Sam’s China, however, thrives—eight stores now exceed $500 million annual sales, nearing luxury mall performance. CEO Zhu Xiaojing projects 2024 sales surpassing $140 billion, accounting for 70% of Walmart China’s revenue.
Analysts note Sam’s faces intensifying online competition from Costco, Hema, and JD.com. Liu Peng’s hiring signals a digital pivot, but current app changes clash with middle-class preferences for transparency and simplicity. Repeated missteps—like false advertising in food categories—risk alienating core users and denting long-term performance, warns analyst Zhang Shule.