Walmart has sold its entire stake in Chinese e-commerce giant JD.com, raising approximately $3.74 billion to focus on expanding its own operations in China, particularly its Sam’s Club warehouse business.
The decision to exit JD.com, where Walmart was the largest shareholder since 2016, reflects the U.S. retail giant’s strategic shift amid challenging conditions in China’s e-commerce sector, characterized by intense price competition and weak consumer demand.
The sale of 144.5 million JD.com shares was fully subscribed, despite being offered at a discount of up to 11.8%. JD.com’s shares dropped nearly 9% following the announcement.
Walmart emphasized that it remains committed to a commercial partnership with JD.com, while the Chinese company expressed confidence in future collaborations.
Meanwhile, Walmart reported strong growth in its China business, particularly in Sam’s Club, with a 17.7% year-on-year revenue increase in the latest quarter.
The sale allows Walmart to refocus its efforts on its successful Sam’s Club operations in China, where it plans to expand its footprint.
JD.com, facing a challenging retail market in China, will now focus more on its core online business, having repurchased $390 million worth of shares as part of its ongoing buyback plan.