Alibaba Group Holding Ltd (BABA.N) said it signed an agreement with the Chinese joint venture of Macy's Inc (M.N) to set up the U.S. retailer's store on its online marketplace, Tmall Global.
The deal makes Macy's the first U.S. department store chain to join Tmall Global, Alibaba said on Wednesday.
Alibaba and its newer rival JD.com Inc (JD.O) have been trying to win deals with owners of popular U.S. brands to cater to China's growing appetite for imported consumer products.
Macy's said on Wednesday that its joint venture, Macy's China Ltd, with Hong Kong-based retailer Fung Retailing Ltd would invest about $25 million over the next 18 months.
"No physical Macy's stores are planned for China at this time," Macy's said.
The company, which will own 65 percent in the joint venture, does not expect the store to have any "material impact" on its earnings in the year ending January 2016.
Macy's said it expected sales of about $50 million from China in 2016.
Separately, Alibaba reported its slowest quarterly sales growth in three years, sending its shares down about 8 percent to a record low.
Alibaba's shares were down 6.5 percent at $72.28 in late morning trading on the New York Stock Exchange on Wednesday.
(Reporting by Subrat Patnaik in Bengaluru; Editing by Kirti Pandey)