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LPP S.A. Press room LPP doubles its warehouse space in Romania

LPP doubles its warehouse space in Romania

29.03.2021

Due to the growing importance of the Romanian market in e-commerce sales, LPP has proceeded to expand its Fulfilment Centre warehouse near Bucharest. Completion of the works and commissioning of the new facility is scheduled for the third quarter of this year. The doubling of the area of the already operating warehouse will allow the Polish clothing manufacturer to handle online orders from customers in both Romania and neighbouring countries, including Bulgaria, where the company plans to launch online sales later this year.

LPP has decided to expand its Fulfilment Centre, launched in 2019 near Bucharest. The warehouse, which handles online orders of LPP brands, will gain an additional 21,000 m2 upon completion of construction works in the third quarter of this year. This means that the Gdańsk-based company will double its warehouse space available in Romania. The decision to expand the existing facility was driven by the growing role of the local market in the group’s e-commerce sales.

– The works on the expansion of our warehouse in Romania, which have been in progress for over a month, are well advanced. The installation of the concrete pillars, which has just been completed, allows us to start the next stage of construction, namely the preparation of the steel structure of the roof. These works will take several more months. After their completion, we will have twice as much warehouse space in one of the fastest growing markets in terms of online sales growth for our brands – comments Sylwester Dmytriwski, Logistics Regional Network Director, LPP.

The Fulfilment Centre, located near Bucharest, now enables the efficient handling of orders for customers from this country, including offering facilities such as next business day delivery. The expanded warehouse, with a total area of 42,000 m2, will eventually serve not only online orders from Romania, but also from neighbouring countries. The new facility will also carry out cross-dock operations to supply the LPP brick and mortar stores network in Romania and Bulgaria, which currently comprises a total of over 100 stores in both countries.

– Southeast Europe remains an important region for us, also in terms of online sales. One of the fastest growing e-commerce markets in this part of the continent is Romania, which has become the second country after Poland with the largest share of our group’s online revenues. We hope that the revival in this channel, particularly visible in Romania, will continue and doubling the current warehouse space will further strengthen this trend – adds Sylwester Dmytriwski.

The expansion of the warehouse in Romania is, in addition to the e-commerce warehouse currently under construction in Russia and the distribution centre in Brześć Kujawski, another investment aimed at strengthening and developing LPP’s logistics. Upon completion of all three facilities, the group’s total warehouse space will increase by 50%, i.e. from the current 253,000 m2 to 378,000 m2.

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LPP 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 in traditional stores 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 1800 stores with the total area of over 1.3 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 also plays an 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.