Five Walmart Stores in China will be closing this month due to poor performance.

The US-based retailer announced the closure of its outlets in Jiangsu, Yancheng, Hunan, Chongqing and Changde early this month.

Two more outlets in Anhui province are set to follow.

"We sincerely regret any inconvenience caused by this. This is to enable us to continue to grow in China with more quality stores," said Walmart China's media director, Zhang Xuejing.

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The closures, however, are not a sign that the top US retailer is losing money in China as the stores being closed are non-performing ones and contribute only up to three percent of total sales volume.

Zhang said Walmart's expansion plan in China is geared more toward building quality stores rather than increasing the number of its outlets.

Last year, the company said it plans to open 110 new facilities over a period of three years.

These will include hypermarkets, distribution centers, efficient supply chains, and Sam's Club stores.