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LPP S.A. Press room LPP confirms the start of construction of a distribution centre in Brześć Kujawski

LPP confirms the start of construction of a distribution centre in Brześć Kujawski

13.10.2020

LPP goes back to the plans concerning the construction of a distribution centrein Brześć Kujawski. The decision to postpone the project announced in June this year was caused by the pandemic, which forced the Polish clothing manufacturer to significantly revise its investment plans. After the analysis of the current situation of the company, by the decision of the Management Board of the Gdańsk company, the strategic investment in Brześć Kujawski is to start in the first quarter of 2021.

The crisis caused by the COVID-19 epidemic had a significant impact on the financial standing of LPP. The loss of a significant part of revenues due to restrictions on the operation of retail outlets forced the company to introduce strict cost discipline in each area of activity and changes in investment plans, including the revision of the project to build a distribution centre in Brześć Kujawski.

– Without a doubt, it was one of the most difficult periods in the history of LPP. We are all the more pleased that today, after many months of struggle to survive and maintain the company’s financial liquidity, we can have an optimistic outlook on the future.. The decisions we made during this time and the implementation of projects strengthening e-commerce sales and optimisation of areas supporting the company’s operations during the crisis have made it possible to maintain continuity of business processes. Owing to these actions, despite the still uncertain market conditions, the company’s situation today is stable and allows us to continue our commitments in Brześć Kujawski – comments Jacek Kujawa, Vice-President of LPP.

The construction of the new distribution centre remains one of the key undertakings for further development of LPP, and its location in the Brześć Kujawski municipality is of strategic importance for the company in operational terms. The project, which will be carried out in stages, will be adapted to the current direction of the company’s development and its current and future logistics needs. The modern and partially automated facility with an area of 65,000 m2 will provide jobs for about 500 people already in the first phase of its operation. Ultimately, as the intensity of warehouse operations increases, the company plans to create up to 1000 jobs. The construction is planned to start in the first quarter of 2021 and the distribution centre will be launched at the turn of 2021/2022.

LPP also remains an active participant in the social life of the municipality. So far, activities undertaken in cooperation with the Municipal Office will focus primarily on support in the area of education of the youngest residents. This year, the sets of gifts funded by LPP as part of the “School starter kit” campaign will once again be given to pupils starting their education in primary schools in the municipality. With first-graders as well as senior pupils in mind, LPP also confirms the continuation of the “English with LPP” educational programme initiated in 2019 in cooperation with a language school in Włocławek and the municipality authorities.

– I am very pleased with the decisions taken by LPP to start the construction of the distribution centre in the municipality of Brześć Kujawski. Taking into account the economic situation caused by the COVID-19 epidemic, we had been waiting patiently for the decisions of the Management Board with full understanding. I would also like to thank on behalf of the residents for the continuation of the social activities financed by LPP, related to the school starter kit and English lessons. I wish the Management Board and the whole community of LPP successful implementation of the intended project in accordance with the adopted schedule and I declare the Brześć local government’s help and involvement in the implementation of this project – comments Tomasz Chymkowski, Mayor of Brześć Kujawski.

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LPP SA is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1700 stores with the total area of over 1 million sq.m. The online offer of the brands collections is available on 29 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 265 million pieces of clothing to three continents. LPP plays another important role as it employs over 24 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.