Walmart is reported to be planning a recalibration of its physical retail presence in Beijing through the introduction of a new generation of smaller-format stores, signaling a strategic shift in response to the country's rapidly evolving retail landscape.
The step will mark a significant development as Walmart has, for some years, refrained from prioritizing the Beijing market.
Walmart's physical footprint in Beijing has contracted significantly in recent years. Data indicate the company currently operates five stores in the city. Since entering China in 1996, the company has faced sustained pressure from the rise of e-commerce and the expansion of discount and community-based retail formats, which have eroded the competitiveness of traditional big-box stores.
However, according to staff at BHG Mall in Changping district, a Walmart supermarket is undergoing renovation at the site of a former BHG grocery store, which closed at the end of May. While the final format has not yet been officially disclosed, the store is expected to open in the coming months. Personnel at the BHG Mall in Shunyi district said its underground supermarket space was handed over to Walmart for redevelopment following closure on May 26, with the opening timeline yet to be announced. Walmart China did not comment on the new development.
Walmart's strategy is increasingly centered on smaller, more localized store formats. In early 2025, the company launched a community store pilot in Shenzhen, Guangdong province, covering about 500 square meters and offering around 2,000 product items or stock-keeping units (SKUs) focused on daily essentials.
A more significant milestone came in April 2026, when Walmart reopened its renovated outlet in Chengdu, Sichuan province, as a "New Generation Store". The nearly 3,000 sq m outlet carries around 10,000 SKUs, emphasizing fresh food and private-label products under the Marketside brand. Walmart has indicated this format will serve as a blueprint for broader nationwide upgrades, with more than 100 stores expected to be renovated or newly opened within the year.
Jason Yu, general manager at CTR Market Research, said Walmart's return to Beijing should not be interpreted as a revival of the traditional hypermarket model, but rather as part of a broader restructuring toward compact, high-efficiency stores.
He said that the new openings align closely with the "New Generation Store" format, positioned to compete with operators such as Hema and Dingdong Maicai. "This is not a return of the 10,000-square-meter hypermarket," Yu said, adding that Walmart is effectively transferring operational practices from Sam's Club into its core supermarket business.
Yu said that Sam's Club's robust performance in China provides financial support for Walmart's restructuring efforts, enabling the company to close underperforming locations while investing in upgraded formats. The Marketside private label, he added, mirrors the value proposition, leveraging centralized sourcing and supply chain efficiency.
At the same time, industry consolidation — driven by the withdrawal of Carrefour, the financial difficulties of Yonghui and the acquisition of RT-Mart — has released prime retail locations, allowing Walmart to selectively reenter high-traffic urban areas, Yu said.
However, whether Walmart can reverse its broader operational decline will depend on the performance of these new formats over the next 12 to 24 months, Yu added.