The State Administration for Market Regulation summoned Walmart China executives on Monday. Regulators addressed multiple food-safety incidents occurring at Sam’s Club physical stores and online platforms. The agency urged management to enhance food-safety controls and address risks across its supply chain.
Sam’s Club serves as a primary growth driver for Walmart in China by targeting a large middle-class consumer base. This regulatory action threatens the brand’s reputation and future expansion plans during a broader slowdown in Chinese consumer spending.
Sam’s Club issued an apology through a state-backed media outlet and established a special task force to rectify the issues. The company committed to reporting its progress to authorities and pledged to optimize product quality control to comply with all regulations.