Co-Founders of Wal-Mart's Chinese E-Commerce Venture to Leave

By Sarah Nassauer 

Wal-Mart Stores Inc. said Tuesday the co-founders of its Chinese e-commerce venture have announced their departures, putting a central part of its China strategy in transition.

Yihaodian Chairman Yu Gang and Chief Executive Liu Junling, who launched the company in 2008, are leaving to pursue their next venture, Wal-Mart spokesman Dan Toporek said in a statement. Wal-Mart, which holds a 51% stake in the company, said it remains committed to Yihaodian and will look for new leaders.

"We are pleased with the success Yihaodian has had in China, and will work to accelerate that growth," Mr. Toporek said. "We believe Yihaodian has a very bright future."

Wal-Mart is leaning heavily on Yihaodian for its growth in China. The world's largest retailer is pulling back on expanding its brick-and-mortar presence in the region as Chinese shoppers flock online.

Yihaodian, which means No. 1 Store, has begun expanding from its early niche in online groceries, offering a wider array of products including consumer products, appliances and apparel.

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