Update On :21 June 2016
Wal-Mart Stores Inc. is switching strategies in China, striking a deal to forge a partnership with one of the countryâ€™s largest e-commerce players rather than continue trying to crack the fast-growing but competitive market on its own.
Wal-Mart on Monday said it will sell its Yihaodian website to JD.com Inc.â€”the second-largest online retailer in China Wal-Mart will receive a 5% stake in JD.com, valued at roughly $1.5 billion at recent prices, and access to JD.comâ€™s delivery network and shoppers.
JD.com American depositary shares rose 4.6% to $21.06 on the Nasdaq Stock Market amid the news, which was reported earlier by The Wall Street Journal. Wal-Mart shares rose slightly to $71.10 on the New York Stock Exchange.
The Chinese retail landscape has become cutthroat as the economy slows and consumer buying behavior shifts online and to mobile-phone purchases much faster than in the U.S. JD.com and Alibaba are battling for customers, promising delivery in under an hour in some cities and pushing into rural towns.
Wal-Mart has struggled to expand in the country, even though it gets about one-third of its $482.1 billion in annual sales outside the U.S. The retailer opened its first store in China in 1996 but only has about 430 there today, or one-tenth as many as in the U.S. Foot traffic to Wal-Martâ€™s Chinese stores has fallen for nine quarters straight, though spending per trip is on the rise.
News Source From : http://www.wsj.com/articles/wal-mart-in-talks-to-sell-chinese-e-commerce-business-to-jd-com-1466423930