Li Jinyuan, president of Tiens Group, told First Financial Daily that BannerStore, a supermarket brand owned by Tiens Group, will start its global expansion in 2008.
Apart from opening 2,000 franchise chain stores abroad, the group will invest money to open 1000 domestic Chinese stores. In addition, it formally starts cooperation with China Post Logistics Corporation to realize the greater development.
In 2007, Tiens Group formally announced its entry into the retail industry. It invested US$250 million to build up BannerStore Retailing International Investment Group. On February 8, 2007, its first global flagship store opened in its headquarters in Tianjin. Then the company announced plans to open more BannerStores in Beijing, Tianjin, Baoding, Harbin and Zhengzhou. Those stores are mainly franchise ones.
However, some BannerStores have gone out of business recently. In regards with this situation, Li explains that the group is liquidating franchises. It is true that some stores are closed, but it does not mean there is problem in its operating format, he says. In contrast, with one-year operating experience, the group is more confident in its BannerStore. The reason for shutting stores is only because the performance of those stores did not meet the standard of the company, he adds.