Maidelong reshuffles top management

Maidelong, or Metro China, the high-end retail format of Wumart Group, has reshuffled its top management, installing retail veteran Andrew Miles as executive chairman and appointing Xu Shaochuan as CEO, in a move that indicates intensifying competition in the country's fast-growing membership-based retail sector.

The changes, effective since Monday, also see former Metro AG executive Tino Zeiske transition into an advisory role, according to a company statement.

Miles, who previously held senior roles at Walmart China and led the expansion of Sam's Club China, will focus on long-term strategy and value creation. Xu will oversee day-to-day operations, with both executives tasked with sharpening customer focus, boosting efficiency and driving profitable growth.

The leadership overhaul comes as Maidelong seeks to reposition itself in a market increasingly dominated by scaled membership operators. "Less is more" has emerged as a guiding principle under Miles, emphasizing tighter product selection and more disciplined, customer-centric decision-making, the company said.

Miles' return to frontline retail follows more than a decade at Sam's Club, where he helped expand the chain from fewer than 10 outlets to over 50 stores in China, while building localized supply chains and a robust membership ecosystem.

The business surpassed 100 billion yuan ($14.6 billion) in annual sales in 2024.

Founded in Germany in 1964,Metro AG entered China in 1996 with a business-focused membership warehouse model serving restaurants, hotels and retailers. Over time, the company expanded to cover business customers as well as retail consumers.

That ambiguity has persisted even after Wumart Group acquired an 80 percent stake in Metro China in 2019. The chain now operates nearly 100 stores across more than 60 cities, but faces mounting pressure to define a differentiated strategy.

Industry analysts say Maidelong's challenge lies in leveraging its legacy B2B customer base while integrating Wumart's local supply chain and store network to build a hybrid membership model distinct from Sam's Club.

Meanwhile, Sam's Club is accelerating its expansion. The retailer has signed four new projects and opened two stores so far this year, with a pipeline of about 10 additional locations in recruitment or planning stages. Parent company Walmart has also stepped up engagement with local governments, signaling a stronger commitment to the market.

New projects in cities including Kunming, Yunnan province; Guangzhou and Shantou, Guangdong province; and Yiwu, Zhejiang province, reflect an "asset-light" expansion strategy, where local partners develop properties that Sam's Club then leases and operates.

According to consumer insights platform Worldpanel, Walmart China is implementing a dual-track strategy focusing on community stores and membership warehouses during the first quarter. By strengthening product competitiveness and building localized supply chains, both Sam's Club and Walmart's private label brands have achieved rapid growth.

Meanwhile, rival Costco is also expanding, though its strategy in the country has been clouded by a trademark dispute between affiliated entities recently.

wangzhuoqiong@chinadaily.com.cn