Walmart Plans to inject $1.2 billion in China

World’s best retail store, Walmart, intends to pump in$1.2 billion into China’s distribution centres. The announcement was made public on Monday. The investment will be carried out over a period of next 10 years.

The move comes at a time when the American company faces completion from local rivals such as Alibaba Group and online retailers.

According to reports, the investment will be used to boost grocery deliveries in China, and upgrade logistics division, the company said. 10 logistics centres will be built as an apart of the newdevelopment.

The retail giant has already injected $102 million in establishing a distribution centre in Southern part of China. The distribution centre will sell perishables for online customers.

Earlier, Walmart joined hands with JD.Com, Chinese tech firm three years ago, and also pumped cash into Dada-JD Daojia, a China-based delivery firm.

The company has been conducting pilots for its smaller "smart supermarkets". The new concept store allows customers to use their smartphones as scanners that are then read at the checkout. Last year, Smart supermarket made its debut in Shenzen.

It is learnt from reports that Walmart has 443 stores in China, which includes its main brand along with Sam's Club; Walmart’s its membership-only subsidiary. In 2018, the revenue generated from China operations was $10.7 billion in sales.

The sources are referred from Reuters and CNN Money.