US retailer Walmart has announced plans to open 500 new stores in China, despite reports of an economic slowdown in the country.
Walmart said it will open 500 new stores in China in a span of five to seven years in order to more than double its presence in the country. China is forecast to become the largest grocery market in the world by 2023.
The retailer announced its plans to expand in China amidst the country's weakening economy due to a slowdown in growth and the prolonged trade war with the US. Last quarter, China's gross domestic product (GDP) growth fell to its lowest level in almost three decades and the government has been introducing stimulus initiatives to boost the economy.
Despite this, consumers in China continue to spend, which is good for the retailer. For the quarter, Walmart's China sales surged by 6.3% compared to the same period in 2018. This is higher compared to the company's global sales increase of 2.5%.
According to the company, groceries and online shopping are key drivers of its China expansion and that it also plans to remodel over 200 existing stores in the country over the next few years. Additional features will include a self-service cash registers where customers can pay using facial recognition.
James Ku, a senior vice president with Walmart China, said the company is embarking on "multi-format strategies to bring customers freshness, value and convenience." He added: "We will continue to collaborate with partners and policymakers in China to accelerate our expansion."
Walmart currently has a partnership with Chinese e-commerce site, JD.com, the second largest e-commerce player after Alibaba, to host its groceries and other various products on its own online shopping platform. Meanwhile, over 100 of Walmart's stores in China serve as warehouses for JD.
In 2016, JD acquired Walmart's Chinese e-commerce site, known as Yihaodian.
