Wal-Mart Stores, Inc. (NYSE:WMT) is planning to invest in online grocery services in China. The company plans to spend $50 million in a Chinese firm known as New Dada.

Walmart revealed the plan to invest in the Chinese grocery and delivery firm on Friday. The retail company’s plan is to extend its partnership with online service companies in China so that it can increase its sales numbers in the country. China is the second largest economy in the world, thus creating a sizable market for Walmart and other retail firms operating both online and brick and mortar stores.

Walmart’s strategy for China became more apparent this year after the company sold its online platform known as Yihaodian so that it could acquire a stake in Chinese e-commerce firm JD.com. The latter and Walmart have teamed up through a joint venture that owns New Dada. Walmart plans to use the platform to reach out to more Chinese customers through faster delivery. So far New Dada boasts a presence in 300 cities in China and more than 25 million registered clients.

“Today’s exciting announcement brings together the global retail leader and China’s largest grocery delivery network to create a unique new shopping experience. Combining New Dada’s unparalleled delivery network with Walmart stores means consumers will enjoy convenient access to a wide range of high-quality goods delivered to their homes and offices in record time. We look forward to deepening our cooperation with Walmart as China’s O2O retail industry continues to evolve and grow,” stated New Dada CEO Philip Kuai.

The grocery delivery service provided by the company offers a 2-hour delivery timeframe for customers within a 3 Km radius of any Walmart store. So far there are 20 Walmart stores that are part of the program. Walmart CEO Doug McMillon pointed out that the partnership would enhance the customer shopping experience through faster and easier shopping.

Walmart stock closed the latest trading session at $68.73.