Bentonville-based Wal-Mart Stores, Inc. announced today that it has reached an agreement to acquire a minority stake in the holding company of Yihaodian, a Chinese-based e-commerce company.
Terms of the deal were not disclosed. The transaction is expected to close within 60 days.
Launched in July 2008, Yihaodian offers more than 75,000 items and has achieved a significant position in online grocery sales, as well as in categories such as baby/Mom, consumer electronics and apparel. With 2,000 employees and an existing logistics network based in Shanghai, Beijing, and Guangzhou, Yihaodian is serving a growing customer base with next-day delivery of essential daily items at competitive prices, according to a press release detailing the transaction.
"We are excited about this investment. Online sales in China are growing rapidly and are projected to match U.S. online sales in the next few years," said Eduardo Castro-Wright, CEO of Walmart Global eCommerce and Global Sourcing. "By investing in Yihaodian, we’re continuing to establish a presence in this important eCommerce market, and are moving forward on fulfilling our aspiration of being the leading global multichannel retailer."
Gang Yu, co-founder and chairman of Yihaodian, said, "We are very excited about Walmart’s investment in Yihaodian. Walmart brings its global vision into our business. In addition, its supply chain excellence will help us gain a competitive edge in the eCommerce industry in China."
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