Walmart sold its stake in a Chinese e-commerce company, JD.com, for about $3.6 billion. They had been partners for eight years. The Chinese tech market is tough now, so Walmart decided to focus on its own online businesses in China. They sold 144.5 million shares of JD.com. The price was $24.95 per share. This was 11% lower than the previous day’s closing price. The sale caused JD.com’s shares to drop by 12%. Walmart will use the money from the sale to improve its own stores in China. They plan to keep working with JD.com despite ending their partnership. Walmart’s Sam’s Club business in China is doing well. Other hypermarkets are struggling. Chinese online retailers are trying hard to make more money as people change how they shop. This change in partnership between Walmart and JD.com follows a trend of online and offline businesses separating. It all started in 2016 when Walmart bought a 5% stake in JD.com.
Vocabulary List:
- E-commerce /ˈiːˌkɒmɜːs/ (noun): Commercial transactions conducted electronically on the internet.
- Partnership /ˈpɑːrt.nər.ʃɪp/ (noun): A relationship between individuals or groups working together toward a common goal.
- Stake /steɪk/ (noun): An interest or share in a business or enterprise.
- Struggling /ˈstrʌɡlɪŋ/ (verb): Experiencing difficulties or challenges.
- Trend /trɛnd/ (noun): A general direction in which something is developing or changing.
- Retailer /ˈriː.teɪ.lər/ (noun): A business or person that sells goods to consumers.
