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Business / Companies

Wal-Mart strengthening strategic cooperation with JD

By ZHU WENQIAN (China Daily) Updated: 2016-10-20 09:04

Wal-Mart strengthening strategic cooperation with JD

Doug McMillon, chief executive officer of Wal-mart. [Photo provided to China Daily]

Wal-Mart Stores Inc said on Wednesday in Beijing that it plans to take further steps to deepen its strategic cooperation with JD.com Inc, one of China's leading e-commerce marketplaces, as the world's largest retailer plans to further tap the retail market in China.

On Oct 6, Wal-Mart raised its stake in JD from 5.9 percent to 10.8 percent, and it is reported that Wal-Mart has become an observer member of the board of JD.

In June, Wal-Mart partnered with JD and received 5 percent stake in JD, and the two planned to partner in several strategic areas.

"The cooperation gave us wider customer access and provides our stores potential traffic from JD's huge customer base. We would like to deepen the cooperation, and deploy more efforts on e-commerce and mobile shopping, as they become part of the trends of consumers' shopping behaviors," said Doug McMillon, CEO of Wal-Mart.

He said Wal-Mart is upbeat about the growth potential of the China market, and earlier estimated that 25 percent of its global retail growth will be in China in the next five years.

Meanwhile, the retail giant launched its Wal-Mart Food Safety Collaboration Center in Beijing on Wednesday. Wal-Mart and Wal-Mart Foundation plan to invest $25 million in funding over the next five years to support research projects in applied science, education and communications, which will help to enhance China's food safety.

"By bringing together the best food safety thinkers from across the food ecosystem, from farmers to suppliers, retailers and policy regulators, we will accelerate food safety awareness and help make Chinese families safer and healthier," McMillon said.

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