Walmart has signed a deal with JD.com: the American retailer willl get 5 % of the Chinese online retailer's shares in return for Yihaodian, Walmart's online marketplace in China.
Align supply chain
Both companies will also work more closely together in China: department store chain Sam's Club will open a store on JD.com, while both companies will also align their Chinese supply chains.
The collaboration with JD.com is part of Walmart China's new strategy, as it has failed to penetrate this market over the past few years. Walmart CEO, Doug McMillon, feels it is imperative that the American company gains a foothold in China.
The deal should help the company reach a huge number of customers rapidly and a Sam's Club web shop on JD.com will bring a wide range of products to the Chinese consumer for the first time. JD.com on the other hand has gained a valuable partner in its competitive fight against Alibaba.