In the near future, LPP will focus on supporting the development of the youngest Sinsay brand and plans to open another 440 Sinsay stores this year. Picture mat. presses.
In 2023, clothing company LPP SA will debut in three new markets, opening its Sinsay stores in Italy and Greece and the Reserved franchise stores in Cyprus.
- The financial situation of the Polish clothing company remains stable. Excluding the Ukrainian and Russian markets, LPP’s estimated revenues for fiscal year 2022/23 could exceed 16 billion PLN, which means a 13% increase in sales. y / y
- In the current financial year, the Gdansk company plans to open more than 500 new stores with a total area of 500,000 square meters. sq.m
- Gdansk also expects the e-commerce channel to grow further, with sales expected to exceed 5 billion PLN by the end of this fiscal year.
- The company plans to gradually develop more than 500,000 fixed line networks. sq.m new retail area.
- The company intends to continue to develop the Reserved retail network in Germany and the United Kingdom.
The need to suspend operations in Ukraine and the decision to close all brick stores and online sales in the Russian market LPP Loss of about 25 percent. they come.
In response to the difficult and uncertain situation in the region, which has been one of the most promising situations for the company so far, the company has decided to set new directions in its development strategy. LPP’s business plans will include activities to increase the retail sales of the stationary network in existing markets, as well as activities to increase the Polish garment manufacturer’s brand offer in the European Union in terms of further foreign expansion in Europe.
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– After a difficult period of the pandemic, we faced new challenges related to the loss of a significant part of the sales network. Nevertheless, the company’s position remains stable, and the expected revenues of more than 16 billion PLN for the current financial year allow us to think with confidence about the future of LPP. On the other hand, as it is impossible to predict the future situation in war-torn Ukraine, we have decided to focus on development in the existing EU countries with our proposal, he says. Przemysław LutkiewiczVice President of LPP.
– At the same time, we want to debut in new markets, especially in the Southern European region, where we see growth potential for our brands. In our opinion, these concrete decisions and ambitious plans for future foreign expansion will allow us to maintain the stability of the Group, regardless of the situation in eastern markets, Lutkiewicz explains.
LPP’s brand restructuring strategy in Europe
In the current financial year, the Gdansk company plans to open more than 500 new stores with a total area of 500,000 square meters. sq.m Activities carried out in parallel, both in new markets and where LPP brands already exist, to help compensate for the losses caused by the armed conflict along the eastern border and to strengthen the market position of all brands in Europe, with a special focus on the Sinsay brand.
– In the near future, we want to focus on supporting the development of our youngest brand, and this year we plan to open another 440 Sinsay stores. In this way, we want to build the company on two strong pillars – our flagship brand Reserved and Sinsay, and from such a stable position to implement future development plans. However, we do not limit ourselves to these two brands only. By the end of this year, our sales network will expand to 100 more stores of other brands – says Przemysław Lutkiewicz.
Plans to enter Albania in 2022 with the offer of all 5 LPP brands remain in force, and in 2023 the company wants to debut in three more markets. The Sinsay brand will open stores in Greece and Italy, and the first Reserved franchise stores will appear in Cyprus. The development of the brand’s retail network will continue in Germany and the United Kingdom.
Sinsay’s online offer attracts Italian customers
– The great interest of Italian customers in the online offer in the pan-European store forced us to open Sinsay stationary stores in this country. The Greek market looks equally promising, and we see it as a natural direction to further strengthen our position in the Balkans. On the other hand, with the Reserved offer, we want to reach customers in Cyprus through franchise stores. The main thing is that, seeing the growing interest in the Sinsay home line, we do not rule out the expansion of the Reserved range. At the same time, we want to develop a catalog of products of this brand, which is available on the online channel to better meet the expectations of its current and new customers – announces Vice President Lutkiewicz.
This year, the company will focus not only on expanding its external fixed network, but also on developing an e-commerce channel that achieved more than 30% sales in the fourth quarter of 2021/22. The value of online sales this year could reach as much as 5 billion PLN, according to the company. The company sees great potential in this area in countries such as Austria, Italy and Germany.
New conditions and changes in the global economy have forced businesses to move from eastern markets to central-southern and western Europe. However, this does not change the assumptions made to strengthen the LPP’s performance as a fully-fledged organization by taking advantage of developments during the pandemic. As in previous years, the company focuses on a flexible approach to customer needs and expectations, which is reflected in the announced directions of development.