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LPP S.A. Press room LPP to launch another e-commerce warehouse in Russia

LPP to launch another e-commerce warehouse in Russia

11.03.2021

LPP has signed a contract to lease warehouse space in Moscow’s industrial park – “PNK Park Zhukovsky”. Built on behalf of the Gdańsk-based company, the 30,000 m2 Fulfillment Center will be dedicated to handling e-commerce sales in Russia. The new facility in LPP’s distribution network, located 19 km from the Moscow ring road, is yet another step towards strengthening multi-channel sales of the Polish clothing manufacturer.

LPP has signed a long-term lease agreement concerning space in a Moscow industrial park with a Russian development company. The 30,000 m2 facility will serve as a Fulfillment Center in the logistics network of the Gdańsk-based company. The warehouse, built within the“PNK Park Zhukovsky” complex situated 19 km from the Moscow ring road, due to its location, will make it possible for the company to significantly improve the handling of customers’ online orders on one of its key markets.

– LPP’s strategy for omnichannel development in Russia is tantamount to new challenges we will be facing related to network expansion and continuous improvement of logistics infrastructure. We have long seen a strong interest in our online store offer among customers in this region, and the pandemic period has further reinforced this trend. Investment in a modern Fulfillment Center in the “PNK Park Zhukovsky” complex is therefore an important step towards achieving our goals of dynamic sales growth in the e-commerce channel – comments Sebastian Sołtys, Logistics Director, LPP.

The first stage of the investment, which is being carried out by the PNK Group on behalf of LPP already in the current season, involves the construction of a facility with an area of 30,000 m2. As agreed, the second phase will continue in 2022 in line with the growing space needs of the Gdańsk-based company.

The Polish clothing manufacturer has had a 15,000 m2 Distribution Centre in Russia since 2012, which provides supplies for more than 400 LPP’s brick and mortar stores in Russia and Kazakhstan. In 2017, the company expanded its logistics network and launched a 17,000 m2 warehouse near Moscow dedicated to online sales. With the new facility, LPP plans to triple the number of online orders processed in the region.

– The first talks about lease in this location started even before the pandemic. And this, in turn, has significantly changed the balance of power between our sales channels by increasing the role of e-commerce. With this in mind, it was particularly important for us that the facility should cater to the new needs of our logistics infrastructure, have an optimal central location and provide the opportunity to dynamically increase the space in this complex. The new Fulfillment Center warehouse, which will be located in close proximity to the Russian capital, meets these expectations – explains Sebastian Sołtys, Logistics Director, LPP.

LPP’s investment in Russia is not the first one carried out in cooperation with the PNK Group. In 2019, the Polish company leased a 32,500 m2 industrial building in the PNK Sered complex in Slovakia. The Slovak Fulfillment Center handles online orders in the Central European region.

LPP has been developing its global sourcing and distribution network for years, with all of its warehouse space now totalling over 250,000 m2. The long-term investment of lease space in the PNK Zhukovsky facility is another step for the Polish company to implement its omnichannel strategy. As part of the transformation of logistics, technology and sales processes, the company fully integrated its sales channels last year. LPP’s presence in this location further facilitates the implementation of the company’s business strategy in the new retail reality.

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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.