Wal-Mart buying minority stake in Yihaodian

AP News
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Posted: May 13, 2011 9:02 AM
Wal-Mart buying minority stake in Yihaodian

Wal-Mart Stores Inc. is buying a minority stake in online company Yihaodian as it looks to tap into growing online sales in China.

Terms of the deal and the size of the stake were not disclosed.

Yihaodian sells groceries, consumer electronics, clothing and other items. The Chinese company was launched in July 2008 and has 2,000 workers.

Walmart had 328 stores in China as of Dec. 31, according to a regulatory filing.

"By investing in Yihaodian, we're continuing to establish a presence in this important e-commerce market, and are moving forward on fulfilling our aspiration of being the leading global multichannel retailer," Eduardo Castro-Wright, vice chairman of Wal-Mart Stores and CEO of Walmart Global eCommerce and Global Sourcing, said in a statement.

The deal is expected to close within 60 days, the world's biggest retailer said Friday.

Wal-Mart's overseas business, which includes China, Brazil, Japan, Mexico and other countries, made up approximately 26 percent of the company's revenue in fiscal 2011. Wal-Mart said China, Brazil and Mexico contributed some of the biggest sales increases for the period.

Wal-Mart has 8,986 stores in 15 countries. It is based in Bentonville, Ark.