Walmart has sold its entire stake in Chinese e-commerce giant JD.com.
The mentioned decision is contained in a securities filing published this week. The sale of shares in the e-commerce giant is because Walmart has recently been paying more attention to the retail sector of the Chinese market, which is one of the largest in the world.
At the end of last year, Walmart’s share in the structure of JD.com equities was almost 10%. The relevant information is contained in the annual report published by the Chinese e-commerce giant.
The US retailer first purchased JD.com securities in 2016. The corresponding deal was made as part of the exchange for the sale of Walmart’s e-commerce business, called Yihaodian.
Li Chengdong, head of Chinese tech think tank Haitun, said during a conversation with media representatives that the retailer invested in JD.com when the company’s business was on a rapid growth trajectory. The expert also noted that at that time, the entire e-commerce market demonstrated an upward dynamic. Li Chengdong separately underlined that the acquired stake allowed Walmart to learn from JD.com. According to the expert, the US retailer is currently showing good results within its own business in the Chinese market. Due to this the strategic value of the stake in the local e-commerce giant has decreased.
According to media reports, Walmart’s increased attention to the mentioned Asian country extends to Sam’s Club stores. The corresponding trade chain has recently become increasingly popular among those consumers in China for whom the possibility of saving money is a priority when making purchases.
The media also reports that Walmart intends to continue cooperation with JD.com. The sale of shares allows the retailer 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 company also said that it has been able to achieve success in various markets around the world as a result of timely adjustments to its asset portfolio.
The news of the sale of shares in JD.com was made public about a week after Walmart reported its earnings, which show slow but steady growth. The company’s total revenue for the second quarter of fiscal 2025 was recorded at $169.3 billion. This figure showed an increase of 4.8% compared to the result of the same period of the previous year. Walmart’s operating income for the second quarter of fiscal 2025 was recorded at $7.9 billion. This figure increased by 8.5% year-on-year. Currently, the retailer maintains a cautious forecast regarding the dynamic of consumer activity in the second half of 2024.
Walmart chief executive officer Doug McMillon says that the company currently does not see a weakening of consumer demand in general. He made a corresponding statement during the earnings call. Doug McMillon also says that the company’s customers around the world and members have a priority system that does not show changes. Value is very important to them. Retail customers also characterize a wide range of goods and services as one of the fundamental priorities. Moreover, it is very important for them that the shopping experience is convenient and enjoyable. Also, the retailer’s customers are interested in doing business with a company they trust.
This year, Walmart teamed up with WorldFirst, a digital payments platform. The purpose of this interaction between the retailer and the fintech company is to help Chinese e-commerce sellers collect funds from Walmart Marketplace. The companies said the new solution for collecting virtual payment transactions will provide online merchants with a high level of security and compliance. In this case, funds will be deposited directly into a merchant’s World account, with no service charges. This year, World First also presented a solution that is designed to help companies belonging to the small business category accelerate the process of making cross-border payment transactions. This solution is called WorldTrade. The corresponding functional offer is intended for those firms that procure products from suppliers based in China.
As we have reported earlier, Walmart Launches Gamified Marketplace.
