The Walmart outlet in Chongqing that was closed. Photo: CFP

The world's largest retailer, Walmart Stores, has closed an outlet in Southwest China's Chongqing, Xinhua News Agency reported on Wednesday.

The store on Nanbin Road, a riverside avenue in Nan'an district in Chongqing, closed on Tuesday.

A staff member, who declined to be named, said the closure was decided by Walmart China because the store had been losing money for a long time. Poor site selection has been given as a major reason for the store's slow trade. The avenue is a tourist attraction offering views of the Yangtze River.

Walmart entered Chongqing 10 years ago, and this was its first closure in the city.

The staff member said the company planned to invest in its 12 other city outlets.

Walmart China closed 10 stores nationwide in November and December 2013.

The emergence of online shopping has been seen as an increasing challenge for firms like Walmart.

Although it still accounted for less than 10 percent of China's total sales of consumer goods, the country's online retail market posted a transaction volume of 1.89 billion yuan ($307 billion) in 2013, growing by 42.8 percent year-on-year.

Walmart's stores also face competition from local retailers.

Chinese grocery retailer Yonghui Superstores has been in talks to rent the site in Chonging that Walmart has vacated.

Xinhua - Global Times