Retail

Walmart To Boost Logistics In China With $1.2B Investment

Walmart To Invest In Boosting Logistics In China

To help upgrade its logistics, Walmart plans to invest $1.2 billion or 8 billion yuan in China over the next 10 years, per the retailer’s social media account. Walmart also plans to renovate or set up over 10 logistics centers, Reuters reported.

Walmart has been moving to integrate its China retail network amid the “smart retail” movement in the country. Merchants along with tech firms like Tencent Holdings Ltd and Alibaba Group Holding Ltd have made arrangements to bring together high street and eCommerce shopping.

The statement comes after a meeting in Japan between Xi Jinping and President Donald Trump during the weekend, which renewed hope for a trade deal between the U.S. and China.

The news also comes after Carrefour agreed to sell 80 percent of its operations in China for $704 million (620 million euros) to Suning.com. According to reports in May, Carrefour opened its first supermarket in Beijing in 1995 and operates locations in over 70 cities in the country. Net sales, however, reportedly fell about 10 percent in 2018 to 3.6 billion euros, even though Yonghui Superstores and Tencent Holdings took a stake in Carrefour China last year.

The three firms planned to work together on data, mobile payments and smart retail. But “alliances in China have slowed, rather than stopped the revenue decline,” Bloomberg Intelligence Analyst Charles Allen said in an April report.

In addition, the retailer is facing competition from eCommerce competitors, especially Amazon. As a result, Carrefour revealed plans last year to expand its eCommerce operations. Chief Executive Officer Alexandre Bompard, in fact, announced plans to invest $3.4 billion USD (2.8 billion euros) in eCommerce by 2022. “Carrefour has reached a turning point in its history,” he said at the time. “We have a huge ambition and I am well aware of the magnitude of this challenge.”

——————————

LIVE PYMNTS TV OCTOBER SERIES: POWERING THE DIGITAL SHIFT – B2B PAYMENTS 2021 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border.

Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

TRENDING RIGHT NOW