by Kim Souza (ksouza@talkbusiness.net)
Walmart sent a signal that it’s reducing investments in China by selling 144.5 million shares of JD.com, which totaled about $3.7 billion. The trade happened Wednesday, ending the retail giant’s eight-year partnership.
The world has changed since Walmart first took a stake in China’s e-commerce platform JD.com in 2016. Walmart ramped up its ownership to 10% as it sought to grow its retail business inside China. Since that time, China has experienced a volatile economy, slower consumption patterns, and a prolonged shutdown from the COVID-19 pandemic.
Walmart said divesting the JD shares indicates the company plans to focus on Walmart China, Sam’s Club, and allocate funds to other priorities. Walmart execs have said the Sam’s Club format is performing well in China for online and physical sales. Market analysts estimate Sam’s Club achieved a compounded annual growth rate of around 30% in the past three years. Sam’s Club China posted annual sales of $11.1 billion (US) in 2023. More than 50% of Sam’s Club orders in China came from online.
