Walmart has signed a deal with Chinese e-commerce giant Alibaba to make more than $3 billion in investments over the next five years in its online store business, including expanding its presence in India.
Walmart also plans to invest $2 billion in a U.S. manufacturing facility in the state of New Mexico that will create 10,000 jobs.
The deal is expected to boost Walmart revenues by as much as $5 billion, according to a statement released Monday by Walmart’s U.K. business.
Backed by Alibaba and the Alibaba Group, the investment will allow Walmart to continue to expand its online business in a country where e-stores have been struggling.
The deal is the latest sign of Walmart’s desire to invest in the growing global marketplace.
“Walmart has a unique opportunity to help create jobs and expand its international reach in a key market for retailers,” Walmart CEO Doug McMillon said in the statement.
“The investment will enable Walmart to bring more of our customers into its online shopping experience and will be a catalyst for the global e-retailer to create new and exciting jobs.”
The deal comes on the heels of Wal-Mart’s recent $2.5 billion acquisition of online marketplace Shopify, and comes just weeks after Walmart also announced it was buying the home-delivery service Uber, which has become a rival to its own e-tailer.
The acquisition of Alibaba and Shopify has sparked fierce opposition from some of the nation’s largest e-shopping and retail chains.
The companies have come under fire for the acquisitions, with some of them labeling the deals as a threat to their brands and their ability to innovate and grow in the U.A.P. state.
The deals come at a time when many Americans are still reeling from the economic downturn and are looking for ways to diversify their spending and income.
Walmart, meanwhile, is looking to expand into more markets, including India, China and Brazil.
Last week, it also announced plans to add 100 new jobs at a U-Haul distribution center in Arizona, as well as open a second warehouse in Mexico.