JDcom Sets Sights on UK High Street Amid Struggles at Home

Richard Liu, the billionaire founder of JD.com, has called the past five years the dreariest chapter in his career. The Beijing-based ecommerce giant, known as Jingdong in China, is now looking to Europe and, in particular, the British high street as it seeks growth beyond an increasingly saturated Chinese market.

JD.com stands as the largest retailer in China by revenue but recent ventures, such as a difficult entry into the domestic food delivery sector and a broader economic downturn, have exposed the company to fresh challenges. The impact of US tariffs has compounded these difficulties, prompting JD.com to accelerate its international ambitions. Although it is a household name throughout its home country, JD.com remains relatively unknown to most British consumers.

Efforts to establish a presence in the UK have so far met with setbacks. Discussions to acquire Currys were abandoned last year, and only last week negotiations with Sainsbury’s to purchase Argos ended abruptly after JD.com significantly revised its proposed terms. Sainsbury’s, mindful of its staff and the remaining physical Argos shops, viewed the deal as particularly complex, insisting on safeguards as a condition for any agreement.

The company’s expansion plan now hinges on a prospective $2.5 billion deal for Ceconomy, a German electrical retailer, though no agreement has yet been finalised. Meanwhile, JD.com has been piloting Joybuy, an ecommerce site in London, with hopes of a wider European rollout in 2026. The company’s approach to online retail contrasts with Western norms; it controls a substantial in-house logistics operation and sells mainly its own stock, ensuring direct responsibility for products from sale to delivery.

Establishing this integrated model in Europe presents formidable hurdles. The logistics required to compete with entrenched players like Amazon demand significant investment and operational transformation, particularly if JD.com acquires legacy businesses with established physical footprints. The DNA of the retailers JD.com has pursued, such as Argos and Currys, is not purely digital, further complicating matters.

Amid political and media scrutiny surrounding Chinese acquisitions of European brands, JD.com’s expansion will attract considerable attention from regulators and government. Any takeover will undergo stringent national security reviews, particularly in Germany. Yet with slow growth and fierce competition at home, European expansion appears increasingly attractive. Despite the company’s revenue rising to $49.7 billion in the most recent quarter, profit margins have come under pressure, with net income halved to $872.8 million.

JD.com’s move signals a wider trend among Chinese technology firms seeking relief from fierce domestic competition and slowing demand. With a combination of infrastructure building and bold acquisition attempts, JD.com is setting the stage for a push into Europe, even as the road ahead promises considerable challenges and close scrutiny.