Bentonville, Arkansas-based Wal-Mart has taken full ownership of Shanghai-based e-commerce firm Yihaodian.com, buying out the 49 per cent stake that it did not already own to accelerate its online drive, reports the American Journal of Transportation.

The investment will help Wal-Mart target China's fast-growing online market at a time when brick and mortar retailers are feeling the pinch from online rivals, said Wal-Mart.

The company's move also comes after China said last month it will allow full foreign ownership of some e-commerce businesses, with the goal of encouraging foreign investment and the development and competitiveness of the sector.

"Yihaodian's local experience, combined with Walmart's global sourcing and our strong local retail presence and supply chain will allow us to deliver low prices, said Wal-Mart's e-commerce chief Neil Ashe.

Wal-Mart, the world's largest retailer, added the purchase of the stake would help accelerate its e-commerce business in China and boost coordination between its physical and online stores.

Wal-Mart Asia chief Scott Price told Reuters earlier this year that online retail was important to help tap China's younger generations and that the firm would increasingly look to weave together its online and offline presence in the market.

Wal-Mart, France's Carrefour SA and Britain's Tesco PLC have all seen sales growth slip over the last five years in China, losing market share to local rivals, according to consumer analytics firm Kantar Worldpanel.

The US retailer also announced that company insider Wang Lu will take the helm at Yihaodian. The e-commerce firm's CEO and chairman had quit earlier this month "to pursue their next venture.