LPP SA will allocate 1 billion PLN for investments. What are the clothing giant’s plans?

The company focuses on the development of the Sinsay network. Figure LPP

LPP SA, a clothing manufacturer and owner of Reserved, Mohito and Sinsay stores, wants to maintain a high investment commitment of 1 billion PLN, including 630 million PLN to develop the chain of stores in 2022/2023, he said. LPP SA board president Marek Piechocki wrote a letter to shareholders in a recent report.

  • LPP was expanding last year. a network of 2244 stationary stores with a total area of ​​approximately 1.9 million sq m at the end of the fiscal year. and increased by 32 percent year-on-year.
  • The company has focused on the development of the Sinsay chain and wants to continue this development. Shops with this logo will be created mainly in retail parks.
  • As a result of the war in Ukraine, the LPP directed the development of its network to the European Union.

“(…) International economic sanctions against Russia and the expected recession in this country have forced us to strongly restructure our business plans for the coming years in the LPP. The European Union, especially in Central and Southern Europe,” we read. in a letter to shareholders Marek Piechocki.

The LPP network is growing, especially Sinsay

In 2021, LPP will expand its network of brick and mortar stores with 2,244 stores with a total area of ​​approximately 1.9 million sq m by the end of the fiscal year. and increased by 32 percent year-on-year.

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“We have focused on the development of the Sinsay brand, especially in small urban agglomerations, where there is the greatest interest in shopping in the affordable brand segment. We want to continue to develop in this direction this year as well. , which will allow us to present a new version of the Sinsay brand in a wide range dedicated to teenagers, women, young men and children.

External expansion continues

As previously announced, the company has expanded its geographical coverage.

In the fall of 2021, the company launched the first stores of all five brands in Northern Macedonia, thereby strengthening its presence in the Balkans. The expansion of LPP in this area began 14 years ago with the opening of the first Reserved store in Romania. Since then, it has expanded its stationary supply to the markets of Bulgaria, Croatia, Serbia, Slovenia and Bosnia.

Today, after entering the Macedonian market, the number of stores in the region is 231 stores with a total area of ​​about 231 thousand. m². “Macedonia seems to us a natural choice on the LPP development map in Southeast Europe. We see this as a market that gives our brands significant development potential. Therefore, we have decided to continue this trend in 2022 and adapt it to our plan. debut in the eighth Balkan market – Albania. In parallel with the Macedonian market, we expanded the scope of our online offer as we started selling our collections online in the 33rd e-commerce market in the third quarter of the year. – in Bulgaria. “

(…) Although we have more turbulent months ahead of me, I believe that recent years have allowed the company to effectively prepare for the economic crisis. This will be facilitated by the great popularity of our collections in current markets, especially the format of our youngest brands, which represent the middle price segment. Both LPP’s ambitious development plans in terms of both the development of the distribution network and the commercial network with the company’s very stable financial position are good forecasts for the coming months, ”concluded Marek Piechocki.

LPP is a Polish family business engaged in the design, production and distribution of clothing. The sales network covers the entire territory of Poland, Central, Eastern and Western Europe, the Balkans and the Middle East.

The company has five brands: Reserved, Cropp, House, Mohito and Sinsay and operates in 39 markets.

Brand concepts and the whole collection are created in Poland, and all strategic decisions are made here.

The heart of the organization is in Gdansk, where the company’s history began. LPP also has offices in Krakow, Warsaw, Shanghai and Dhaka.

The company’s team consists of about 31.8 thousand people in offices, sales and distribution structures in Poland, Europe and Asia.

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