Key Takeaways
- Walmart (WMT)'s Sam’s Club is accelerating its China expansion, targeting over 60 stores by the end of 2026 after opening 10 new locations in 2025.
- Japan’s Tertiary Industry Index fell 0.5% in December, more than double the estimated 0.2% decline, signaling deepening weakness in the domestic service sector.
- The USD/JPY pair slid 0.3% to 153.01 as the Yen strengthened despite the soft economic data, supported by shifting political sentiment in Tokyo.
- Sam’s Club has successfully localized its supply chain and instant-delivery services, helping it reach a revenue milestone of 1 trillion RMB.
Sam’s Club Cracks the China Market Formula
While many foreign retailers are scaling back or exiting China entirely, Walmart (WMT) is finding significant success through its Sam’s Club warehouse model. The retailer opened 10 new stores in 2025, pushing its footprint into smaller "county-level" cities like Zhangjiagang and Yangzhou to capture a growing middle-class demographic.
The success is attributed to a "membership-only" strategy that prioritizes high-quality, bulk items and a robust digital infrastructure. Walmart (WMT) reported that its total sales in China jumped nearly 22% to $6.1 billion in the third quarter, making it the company’s fastest-growing international market. Competitors like Costco (COST) are also vying for market share, but Sam's Club currently leads with over 56 active clubs and nearly 9 million paid members.
Japan’s Service Sector Faces Unexpected Contraction
Economic data released Tuesday showed that Japan’s service sector is struggling to maintain momentum. The Tertiary Industry Index for December dropped 0.5% month-on-month, a sharper decline than the 0.2% contraction predicted by economists. This follows a downwardly revised 0.4% drop in the previous month, suggesting a persistent cooling in domestic demand.
The index, which tracks activity in sectors such as wholesale trade, retail, and finance, is a critical gauge of Japan's economic health. Analysts noted that the weakness in wholesale and business-related services is offsetting gains in the tourism and information sectors. This data may complicate the Bank of Japan’s path toward further interest rate normalization if domestic consumption remains fragile.
Yen Strengthens as USD/JPY Tests 153.01
Despite the disappointing economic data from Japan, the USD/JPY pair fell 0.3% to trade at 153.01 during the Asian session. The Yen's resilience is largely attributed to investor reactions following the recent election victory of Prime Minister Sanae Takaichi. Markets are currently betting that the new administration may adopt more fiscally responsible policies, which has provided a floor for the Japanese currency.
Volatility in the pair remains high as traders look ahead to upcoming U.S. Consumer Price Index (CPI) data. While the Yen has traditionally acted as a safe-haven asset, its recent movements have been more closely tied to interest rate differentials and verbal interventions from Tokyo. Short-term support for the pair is currently pegged near the 152.32 level, with resistance holding at 153.55.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.