While traditional supermarkets struggle with the rise of e-commerce, Linda Wang of Shanghai still visits Sam’s Club, a members-only wholesale store owned by Walmart, the world’s largest retailer.

“Their selection seems more curated,” says Wang, an executive who spends an average of more than 1,000 yuan ($140) each time she shops for her family of four.

“Unlike traditional supermarkets, where there are simply too many options and you feel overwhelmed by the selection, when you shop at Sam’s Club you develop the habit of trusting that they have already made the selection for you.

“They have their own brands, the ones with the Sam’s Club label. And you just trust that their private label products are definitely of good quality and at reasonable prices.”

As China’s retail landscape has evolved, members-only retailers like Sam’s Club have become major players serving a growing middle class that values ​​quality and exclusivity.

And locations on the mainland are also attractive to Hong Kong residents looking for quality goods at bargain prices.

Other members-only retailers, such as Costco and Alibaba’s grocery brand Hema Fresh, have also seen a resurgence in China’s major cities in recent years. Alibaba owns the South China Morning Post.

Sam’s Club has carved out a niche for itself by offering a curated selection of goods that appeal to consumers willing to pay a premium for convenience and trusted brands.

This strategy helped Walmart China report a 17.7 percent increase in sales in the second quarter of the current fiscal year, beating the global average of 4.8 percent, according to the second-quarter earnings report released last week.

The company also announced that Walmart China’s net sales reached $4.6 billion, or about 33 billion yuan, in the quarter, and said the increase was due to the rapid growth of Sam’s Club and its e-commerce business. Sam’s Club saw an increase in customer traffic, a record number of members and a 23 percent year-on-year increase in membership revenue.

Middle-class consumers desire quality goods rarely found in traditional grocery stores, including imported meats and fruits and vegetables, and they are willing to pay a membership fee at big-box stores such as Sam’s Club and Costco for an upscale shopping experience.

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Shop occupancy in Hong Kong is recovering, but vacant shops are still visible throughout the city

Shop occupancy in Hong Kong is recovering, but vacant shops are still visible throughout the city

Sam’s Club operates nearly 50 stores in China and plans to open six to seven new ones each year.

Outside mainland China, Sam’s Club has also become a destination for Hong Kong shoppers attracted by the prospect of relatively low prices and good quality, especially at its stores in the Greater Bay Area.

Thanks to the system that allows private cars from Hong Kong to travel between Hong Kong and Guangdong via the Hong Kong-Zhuhai-Macau Bridge, Hong Kong shoppers can spend money more freely at Sam’s Club stores in the Greater Bay Area.

William Au, 53, is one of the Hong Kong residents who frequently visited Sam’s Club in Shenzhen and Zhuhai over the past year.

“Every time we go to Zhuhai, we shop at Sam’s Club and we notice that almost half of the cars parked there have Hong Kong license plates,” says Au, a lecturer at a Hong Kong university. He adds that his family spends about 800 to 1,000 yuan each time they visit Sam’s Club, mostly on groceries, as prices there tend to be lower than in Hong Kong.