Sam's Club and JD Daojia recently announced that cloud depots jointly built by both sides have achieved great success. For mature depots, the annual sales per square meter achieved ten times the volume of general supermarkets. Currently covering Shenzhen, Shanghai and Beijing, the project is expected to grow in 2019 by expanding into more cities and connecting consumers with quality products through 1-hour delivery service.
Rooted in China for 23 years, Sam's Club has always been renowned for providing high quality items and exceptional member service. Leveraging its robust supply chain and global sourcing network, Sam's Club is able to offer differentiated items from domestic and abroad. In particular, the fresh category is at the core of its differentiation – owing to its high safety and nutritional standard, fresh items have won tremendous recognition from members.
The advent of cloud depots allows Sam's Club and JD Daojia to cater to consumers' instant needs of fresh items and therefore further enhances users' shopping experience. Located in areas where target members reside, the depots store over 1,000 deliberately-selected items, including the bestselling ones in the 'fresh', 'mom and baby' and personal care categories. After an order is placed on the Sam's Club app or JD Daojia platform, deliverymen from Dada will deliver the order within an hour. In order to preserve freshness, Dada packs each frozen item individually with tailorable ice-filled strips that are fully recyclable. Well-placed in a thermal insulation container, such packaging ensures a refrigeration duration of up to 4 hours – effectively safeguarding the quality of frozen fresh items. This new has boosted shopping frequency by as much as 60 percent.
In addition, Sam's Club also managed to acquire new members on JD Daojia platform, which serves as a window for non-members to enjoy high-quality items from Sam's Club and to register for its membership.
"The success of our 'physical club plus cloud depot' model testifies to the inseparable relation among quality, efficiency and cost control. Sam's Club will constantly optimize its omni-channel strategy by bringing more depots into our strategic cities and providing quality items through efficient delivery service. Sam's Club and JD Daojia will collaborate together to strengthen our competitive core and take this business model to the next level," said Zhiyu Chen, senior vice president of Sam's Club.
Sam's Club is a chain of high end membership-only clubs under the Walmart Family, named by the retail giant Sam Walton, founder of Walmart. Since the first Sam's Club opened in Midwest City in Oklahoma State in April 1983, Sam's Club has a history over 30 years. Currently, Sam's Club has developed 800 chain clubs globally and provided superior service to over 50 million individual members and business members. The first Sam's Club in China was opened in Shenzhen on August 12, 1996. So far, Sam's Club has developed a total of 23 clubs in China which are located in 19 cities across the country.