On Tuesday, Walmart Inc (NYSE:WMT) said it has tapped Meituan (OTC:MPNGF) (OTC:MPNGY) for its e-commerce delivery services in China.
The retailer's goods will be available on the Chinese delivery company's app, the Wall Street Journal cites Walmart's China unit in a WeChat post. Walmart's e-commerce business in China accounts for nearly 50% of its sales in the country.
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In October, Walmart had 332 retail units in the country, including 49 members-only Sam's Club stores, a hit with middle-class Chinese families, the report said.
The collaboration with Meituan came months after Walmart sold its ownership of Chinese e-commerce company JD.com Inc (NASDAQ:JD) for $3.6 billion to focus on other priorities away from China's challenging and competitive market.
In November, Walmart reported that its third-quarter net sales in China rose 17% to $4.9 billion, backed by growth during Chinese holidays. Total sales grew by 5.5% to $169.59 billion, above the consensus of $167.72 billion. The adjusted EPS of 58 cents beat the consensus of 53 cents.
Now, let us look at what is brewing with Walmart in the U.S. In November, Walmart CFO John David Rainey warned that President-elect Donald Trump's proposed tariffs could force Walmart to raise prices on some products.
In an interview with CNBC, Rainey acknowledged certain items may see increases if tariffs, ranging from 10%-20% on imports and up to 60%-100% on Chinese goods, take effect.
While two-thirds of Walmart's products are U.S.-made, tariffs could significantly impact the remaining imports.
Walmart stock surged 79% year-to-date. Investors can gain exposure to the stock through iShares Russell 3000 ETF (NYSE:IWV) and iShares MSCI ACWI ETF (NASDAQ:ACWI).
Price Action: WMT stock closed higher by 0.66% at $94.87 on Monday.
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