The expansion of the warehouse network dedicated to e-commerce services is the Polish clothing manufacturer’s response to double-digit growth in online sales and the growing reach of e-stores. The new Fulfillment Center in Pruszcz Gdański, with a total area of 64,000 m2, will increase the efficiency of LPP’s logistics in Poland, the Baltic states and Ukraine, among others. The agreement covers the lease of two connected warehouse halls. The first one, occupying 12,000 m2, has already been operating since July this year and is intended for handling returns. The launch of the second hall, in turn, dedicated to shipping online orders on an area of 49,000 m2 and over 2,000 m2 of office space, is planned for April 2022. By that date, the warehouse is expected to reach full functionality and start picking shipments. The lease of the facility from Panattoni is the largest warehouse contract for e-commerce in the history of the Gdańsk-based company, as a result of which the area dedicated to servicing LPP’s online stores will increase by over 30%.
The design of the new LPP Fulfillment Center located at Panattoni Park Tricity South II provides for a separation of a 49,000 m2 shipping hall, along with 2,000 m2 of office space and a 12,000 m2 section dedicated to e-commerce returns handling. The halls will be joined by a connector, thanks to which communication routes will be maintained, while the functionality of both buildings will remain divided. The lease of another Fulfillment Center warehouse is the Polish manufacturer’s response to growing customer interest in online shopping and the resulting demand for additional operational space. In the second quarter of the 2021/22 financial year, LPP’s online sales increased by nearly 28% YoY and already account for 22% of the company’s revenue.
– As expected, the online sales results of our brands are peaking at double-digit rates and there is no indication that this trend will change significantly. Operating on over 30 online markets, we also see that logistics efficiency is becoming a key element in building sales advantage. Taking into account the recent years, but also the forecasts for e-commerce, expanding the network of Fulfillment Centres, located as close to the customer as possible, will determine the sales results, but also affect the optimisation of logistics costs – comments Sebastian Sołtys, Logistics Director, LPP.
From April 2022, the part dedicated to e-commerce shipments will be picking orders for the Polish, Lithuanian, Latvian, Estonian and Ukrainian markets. The warehouse will accommodate a maximum of over 6 million pieces of product and will be able to process up to 100,000 orders daily. The returns hall, in turn, launched in July this year, is adapted to handle up to 80 thousand parcels a day, which, thanks to the proximity of the shipping part of the warehouse, will allow for quick replenishment of the online stores offer.
The favourable location will allow for a smooth processing of orders from foreign e-stores of the company. The new warehouse in Pruszcz Gdański is located near the A1 motorway and the key national roads (S6 and S7).
– The proximity of the key transport routes is an indisputable advantage of this location, thanks to which we will be able to improve and speed up the handling process of online orders for Central and Eastern Europe markets. Pruszcz Gdański is also the place where we established our Distribution Centre, which is the heart of LPP’s global supply and distribution network and ensures regularity of supply of the goods to our network of Fulfillment Centers. Both of these factors also contribute to reducing our carbon footprint. Thanks to the proximity of the source of supply and a shorter route to the end-customer, we reduce the resultant CO2 emissions and other pollutants – concludes Sebastian Sołtys.
Panattoni Park Tricity South II complex, where the LPP warehouse will be located, has been equipped, among others, with an advanced BMS system managing the facility’s automated control systems for electricity, lighting, ventilation, heating, as well as a system limiting water consumption.
The facility leased by LPP will meet the requirements of BREEAM certification, taking into account high environmental standards and solutions that improve comfort of work. In the already operating returns handling hall, among others, intelligent energy management systems, electric car charging stations were used, along with spacious windows in offices which increase access to daylight. A design analysis of the building was also carried out with regard to the use of natural light and acoustics of office spaces in accordance with BREEAM guidelines. Green areas and their biodiversity as well as enrichment of the ecosystem surrounding the investment were also taken care of. In accordance with the 2020-2025 Sustainable Development Strategy, announced two years ago, LPP wants all new construction facilities of the company to hold BREEAM or LEED certification by 2023.
LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collections on 26 stationary markets, including in such prestigious capitals as London, Helsinki, Tel Aviv or Moscow. The online offer is available on 31 markets. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 2000 stores with the total area of over 1.6 million sq.m. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 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.