Walmart plans to expand its Sam’s Club chain in China.

Sam’s Club, which opened its first store in China in 1996, acts like a purchasing agent for its members. It offers famous-brand merchandise for both business and personal use.

Walmart China CEO Greg Foran believes that there is a strong need to open more Sam’s Clubs in the market. He said the US, with 300 million people, has 550 Sam’s Club while China, with 1.34 billion people, has just 10 currently.

Foran said Walmart plans to open two new Sam’s Club stores in China next year and up to 10 stores per year in the succeeding years.

Increasing focus on Sam’s Club can help the company offset the traffic decline at its Walmart brand stores, which face tough competition from local retailers such as Sun Art Retail Group and China Resources Enterprises and online retailers, he said.

But Foran assured that while the Walmart brand is closing its underperforming stores in China, it remains committed to the market with plans to open 110 new stores over the next three years.