Chinese e-commerce giant Yihaodian is taking the virtual supermarket concept to a new level, by using Augmented Reality to create 10,000 sq ft supermarkets.

Shoppers will be able to browse the virtual aisles of the Unlimited Yihaodian stores by pointing a smartphone camera at a designated blank wall in their city. They can then view images of about 1,000 fmcg products and scan codes of the products they require. Their shopping is then shipped to their homes just like a normal internet order.

Yihaodian plans to launch around 1,000 of the new store concepts, starting with its first stores in the Guangzhou and Shenzhen regions of China later this year. Walmart expects to complete a 51.3% aquisition of Yihaodian next month, but The Grocer understands it will not be involved in this project due to regulatory restrictions.

However, the US retailer referred to its investment at its 2012 investor meeting in Bentonville last week. President & CEO Mike Duke said the majority stake in Yihaodian was an example of how Walmart was “playing to win … and investing in our e-commerce vision”.