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Walmart sold its stake in Chinese e-commerce operator JD. com, ending its direct investment in Alibaba’s rival after more than eight years. The relationship began when Walmart sold its e-commerce business in China to JD. com in June 2016, taking a 5% stake in the company as part of the deal. By February 2017, Walmart had increased its investment to 12. 1%, and in August 2018, Walmart and JD. com invested $500 million in Chinese grocery delivery company Dada-JD Daojia.
However, in recent years Walmart has made progress in China. For fiscal year 2024, which ended January 31, 2024, the store generated sales of $17. 01 billion in the country, up from $14. 71 billion last fiscal year. Walmart’s commitment to operating in China includes its July 2019 announcement that it would invest $1. 2 billion to build or upgrade 10 distribution centers in the country over the next 10 to 20 years.
By contrast, JD. com has fought for its market share against several competitors, adding shopping-reduction app Pinduoduo and social platforms dabbling in e-commerce like Xioahongshu and Douyin, the app owned by ByteDance, which operates TikTok outside China. Porcelain. However, despite those demanding situations and the overall slowdown of the Chinese economy, JD. com increased its net profit in 2023, generating $152. 8 billion, an increase of 3. 7% from 2022.
“Our strategy over the past several years has been consistent, aiming to align our portfolio to have the most productive path to good fortune in our markets,” a Walmart spokesperson said in comments provided to Retail TouchPoints. “JD has been a valued spouse to us for the past 8 years and we are committed to maintaining a continued business with them. This resolution allows us to continue our strong operations in China for Walmart China and Sam’s Club, and deploy capital for other priorities. proceeding to serve our consumers and members in China and around the world.
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