Walmart is now unloading its $3.74 billion stake in JD.com, once key to its China strategy, highlighting its shifting approach.
The unshackling from JD.com highlights the retailer’s broader strategy to exit unprofitable markets.
Following Walmart’s exits from Japan, Britain, Brazil, and Argentina, analysts cite struggles against agile local competitors.
In 2016, Walmart invested in JD.com to scale its Yihaodian platform and enter China’s booming online shopping market.
David Cheesewright, then CEO of Walmart International, viewed the $1.5 billion deal as a strategy to boost competitiveness and sales in China.
The deal, a major U.S. investment in a Chinese retailer, includes opening a Sam’s Club China store on JD.com and fast delivery access.
Since the pandemic, reliance on JD.com has decreased as Chinese consumers preferred Sam’s Clubs for stocking up and reducing store trips.
Post-pandemic, Walmart noted Sam’s Club memberships peaked, with half of Walmart’s China sales coming from online channels.
Walmart on Tuesday said its decision to sell its JD.com stake “allows us to focus on our strong China operations for Walmart China and Sam’s Club, and deploy capital towards other priorities.”
Walmart plans to double its international sales to $200 billion and aims to IPO PhonePe and Flipkart in India.
Kathryn McLay’s divestiture of JD.com highlights her first major move as Walmart’s international CEO amid rising U.S.-China trade tensions.
Several Western firms, including Walmart, are shifting investments from China to India, Pakistan, and Bangladesh for better supply-chain resilience.
While Walmart sells its JD.com stake, it will keep a commercial relationship. Meanwhile, it plans an IPO with its Flipkart stake.
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