Walmart to trade Chinese online business to retailer JD.com

NEW YORK — Walmart is trading its Chinese online business to the country’s No. 2 e-commerce site in a strategic partnership that it hopes will bolster its presence in the extraordinarily lucrative but increasingly competitive online marketplace.

Though JD.com’s strength is in brand-name electronics, it will be able to help capitalize on Yihaodian’s strong brand name and business in eastern and southern China and in important categories such as groceries and household goods.

Sam’s Clubs in China, which number 13, has been a bright spot in the China business, as the company focuses on affluent Chinese shoppers who have been embracing Western ways of shopping.

Walmart has sought to establish itself as a source for high-quality food in the wake of a slew of safety issues in China, and has highlighted imported food to cater to middle-class shoppers looking for premium goods.

The retailer took full control of Yihaodian last July after its first investment in the company in 2011 as it seeks to catch up in China, which has a massive potential customer base in the world’s largest online marketplace.

[...] Walmart has been trying to accelerate the integration of its online business and physical stores in China.