Walmart announces Chinese partnership with JD.com
Walmart has announced a partnership with the Chinese e-commerce firm JD.com to help revive the US company's struggling website Yihaodian.
Walmart will give JD.com ownership of Yihaodian's marketplace, including the brand, website and app.
In exchange Walmart will take a near 5% stake in JD.com, China's second largest e-commerce firm after Alibaba.
Walmart took full control of Yihaodian last year, but has struggled to grow its market share.
"We're excited about teaming up with such a strong leader in JD.com, and the potential that this new relationship creates for customers in China, as well as for our businesses," said Walmart chief executive Doug McMillon.
Walmart will be listed as a preferred seller on JD.com, offering it greater exposure to the Chinese market.
Walmart's Sam's Club brand will launch a shop on JD.com's website.
The deal will also help grow Yihaodian in the western and northern regions of the country where it is less well-known.
"We look forward to further developing Yihaodian, which has tremendous strength in important regions of eastern and southern China," said JD.com chief executive Richard Liu.
Yihaodian's sale of food and beverages, home goods and electronics accounts for just 1.5% of web sales in China, according to research firm iResearch
According to Walmart, the website had more than 100 million registered customers in July 2015.
The two companies also announced plans to improve supply chain management and increase the amount of imported goods.