Walmart also plans to invest 580 million yuan ($93 million) in improving the quality of more than 55 existing stores through a robust remodeling program, expanding remodels to 31 and 45 stores in 2012 and 2013, respectively.

Clarke also announced that Walmart will invest in the expansion of its logistics network in China. "A highly efficient supply chain is the foundation of a successful retail business, and our customers will benefit from improved quality assurance and food safety, reduced costs and better in-stock" merchandise, he said.

Top 10 world's biggest retailers

Walmart closes store in Chongqing

Walmart China currently operates more than 400 stores. Walmart is closing five stores in China this year as it seeks to reposition itself for a challenging market. According to Zhang Xuejing, media director for the company in China, "These closures represent up to 9 percent of our total store portfolio but only 2 to 3 percent of our total sales volume through next year."

According to a ranking of fast-moving consumer goods retailers in China released by the China Chain Store and Franchise Association, Walmart stood at third place, after only China Resources and RT-Mart of Sun-Art group, with sales up 24.5 percent despite its new stores increasing by only 3 percent.

The latest move demonstrated its commitment to improving its market position, said Jason Yu, general manager of Kantar Worldpanel China, who added that Walmart now lags behind the CRVanguard/Tesco alliance and Sun-Art group.

According to Kantar Worldpanel, the market share of retailers is highly correlated with the number of shoppers a retailer can access. Over the 12 weeks ended March 21, Walmart saw fewer shoppers than Sun-Art group.

Yet Yu added that the latest expansion, as well as the renovation investment, showed the retailer is determined to expand its footprint as well as improve shopper loyalty though a better customer shopping experience.