Walmart Announces Strategic Investment in China’s
largest on-demand logistics and O2O Grocery platform New Dada
Investment deepens strategic alliance between JD, Walmart and New Dada and enables grocery delivery from select Walmart stores
November 18, 2016, Shenzhen - Walmart announced the latest quarterly financial report. In China, Walmart Q3 net sales grew 4.2 percent and comp sales increased 1.6 percent with a 4.3 percent increase in average ticket.The key drivers of the performance were strong seasonal and festive categories during the Mid-Autumn Festival and a strong performance in fresh categories, an on-going focus area for Walmart in China. Doug McMillon, President and CEO of Wal-Mart Stores, Inc., added, “We recently announced we own roughly 10 percent of JD.com’s shares. Through the alliance with JD.com Walmart continues to offer exciting new ways for customers to access high-quality products from around the world.”
[Oct. 21, 2016, Beijing/Shanghai, China and Bentonville, Arkansas] – Walmart (NYSE:WMT) today announced a $50 million strategic investment in New Dada, China's largest local on-demand logistics and grocery O2O ecommerce platform. The investment is an extension of Walmart’s broader agreement with JD.com and cooperation with New Dada, which includes using New Dada’s network to offer customers two-hour delivery on groceries ordered from Walmart stores through the JD Daojia Dada app.
The two-hour delivery service is available to customers within a 3km radius of more than 20 Walmart stores that are currently part of the program. The number of Walmart stores offering two hour delivery is expected to double by the end of the year.
New Dada an independent joint venture of JD.com and Dada, boasts more than 25 million registered customers and provides local on-demand delivery capabilities with 2.5M crowd-sourced deliverers across more than 300 cities in China. Walmart has 426 stores in nearly 170 cities.
Walmart CEO Doug McMillon commented, “All around the world, we’re creating seamless shopping experiences that bring together our stores, sites and apps to make shopping faster and easier. Our alliance with JD and cooperation with New Dada will enable seamless shopping to millions of customers across China.”
"Today’s exciting announcement brings together the global retail leader and China’s largest grocery delivery network to create a unique new shopping experience,” said Philip Kuai, CEO of New Dada. “Combining New Dada’s unparalleled delivery network with Walmart stores means consumers will enjoy convenient access to a wide range of high-quality goods delivered to their homes and offices in record time. We look forward to deepening our cooperation with Walmart as China’s O2O retail industry continues to evolve and grow.”
News of the investment comes a day after Walmart and JD.com announced their collaboration on three new services -- exclusive Sam’s Club and Global Imports stores on JD.com, and two-hour grocery delivery through New Dada.
About New Dada:
New Dada (www.imdada.cn) is China's largest local on-demand logistics and grocery O2O e-commerce platform. "Dada," the local on-demand logistics platform of New Dada, covers more than 300 major cities across China, with more than 2.5 million crowd-sourced deliverers serving more than 500,000 merchants, reaching a peak daily orders of more than 2 million. "JD Daojia", New Dada's grocery O2O ecommerce platform, partners with over 30,000 local merchants and provides on-demand grocery and pharmacy shopping and delivery services in 18 cities, including Beijing, Shanghai and Guangzhou, with more than 25 million registered customers.
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices. Each week, nearly 260 million customers and members visit our 11,539 stores under 63 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2016 revenue of $482 billion, Walmart employs more than 2.3 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.