Walmart is pouring more than a billion dollars into its China business as it faces growing competition from local rivals and online retailers. The US retail giant plans to invest around 8 billion yuan ($1.2 billion) in distribution centers in China over the next two decades, it said in a statement sent to CNN Business. Walmart is planning to spend the money to boost grocery deliveries.
"Walmart continues to increase investment in supply-chain logistics in order to ... provide our Chinese customers with great fresh products, and improve our service," Ryan McDaniel, Walmart's head of international logistics, said in the statement.
Walmart has already invested 700 million yuan ($102 million) in building a distribution center for perishables in the south of China as it tries to cater to customers who are increasingly shopping online.
The Arkansas-based retailer, which has been in China since 1996, faces competition from local supermarkets and online rivals like Alibaba , which has grown its grocery business in recent years.
Walmart partnered with another big Chinese tech firm, JD.com , in 2016, and has also invested more than $300 million in a Chinese delivery firm Dada-JD Daojia.
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