Walmart has sold its entire stake in Chinese eCommerce giant JD.com.
The move, announced in a securities filing Tuesday (Aug. 20), comes as Walmart is increasing its own focus on China’s retail sector.
Walmart had owned a nearly 10% stake in the company as of late last year, according to JD.com’s 2023 annual report.
The mammoth retailer first purchased shares in JD in 2016 in exchange for the sale of its eCommerce business Yihaodian.
“Walmart invested nearly 10 years ago when JD.com and the ecommerce market were growing really fast,” Li Chengdong, head of Chinese tech think tank Haitun, told the Financial Times (FT). “The stake allowed them to learn from JD. Now they are doing well on their own in China, so the strategic value of the stake has ended.”
The FT report notes that Walmart’s increased focus on China includes its Sam’s Club stores, which have grown in popularity with the country’s cost-conscious consumers.
According to the FT, Walmart says it plans to keep working with JD.com and that the sale “allows us to better focus on the strong development of China, including the operation of Walmart Supercenter and Sam’s Club, and allocate assets to other priorities.”
The retailer added that it “has achieved success in various markets around the world by adjusting its asset portfolio in a timely manner.”
The news comes less than a week after Walmart reported earnings that showed slow but steady growth and an “appropriately cautious” outlook on consumer spending for the back half of 2024.
“So far, we aren’t experiencing a weaker consumer overall,” CEO Doug McMillon told the earnings call audience. “Around the world, our customers and members continue to want four things. They want value, they want a broad assortment of items and services. They want a convenient and enjoyable experience buying them, and they want to do business with a company they trust.”
And in other, related, news, Walmart recently teamed with digital payments platform WorldFirst to help eCommerce sellers based in China collect funds from Walmart Marketplace.
The companies say this new digital payment collection service will offer online sellers with added security and compliance, with funds deposited directly into a merchant’s World account, with no service charges.
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