Wal-Mart raises stake in China’s

PUBLISHED : Thursday, 06 October, 2016, 7:24am
UPDATED : Thursday, 06 October, 2016, 7:24am

Wal-Mart Stores has increased its stake in, China’s No. 2 e-commerce site.

In a regulatory filing late Wednesday, Wal-Mart said that it has upped its stake in to 10.8 per cent from 5.9 per cent.

The move comes nearly four months after Wal-Mart bought an initial stake in in a deal that also gave ownership of its Chinese e-commerce site Yihaodian, including the brand and app.

Wal-Mart to buy 5 per cent stake in as part of China deal

Wal-Mart, the world’s largest retailer, is trying to improve its business in China, which is lucrative but increasingly challenging. In China, Wal-Mart faces a business that has been slow and uneven. It operates more than 400 stores despite entering the country 20 years ago. It sees bolstering its online business as the future in China.

Wal-Mart said at the time that it announced its initial stake that it could see a tremendous amount of traffic from’s huge customer base and its same-day delivery network.

Getting China right is key to strengthening Wal-Mart’s global online business. In September, it completed its deal to buy fast-growing US online retailer for a purchase price of US$3 billion in cash plus $300 million in stock.

Wal-Mart’s global online sales rose 11.8 per cent in the second quarter. That’s up from the 7 per cent pace of the first quarter but still far weaker than the 20 per cent increases from less than two years ago.