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LPP S.A. Press room LPP intensifies its expansion

LPP intensifies its expansion

09.10.2014

news_lppwzmacniaekspansje_header LPP intensifies its expansion in the West – RESERVED clothing now available in the largest European market. As previously announced, LPP is pursuing its expansion into the German market. The company has signed new contracts to open RESERVED flagship stores in further locations in Germany, including Berlin, where LPP’s first flagship store will be set up. LPP has an ambitious plan to open 30 new RESERVED stores in this market over the next three years.   LPP’s expansion in the West is undoubtedly one of the key decisions made by the Management Board in recent years, aiming to boost the company’s growth and reinforce its position on the international arena. Under the newly signed contract, LPP’s new flagship store will open in a prestigious location – at Tauentzienstraße 18, a major shopping street in the western inner city of Berlin. As per the investment assumptions, in the last quarter of 2016 LPP will be selling its RESERVED products in an area covering 2000 square meters. And as far as other locations go, the RESERVED clothing store chain will lease a massive 2400 square meters of retail space in the Palace shopping mall on Planken Street in Mannheim, a city with over 300,000 inhabitants.   “Germany is the largest clothing market in Europe and fourth largest in the world. It is very well established and promotes the presence of international brands,” says Piotr Dyka, Deputy President of LPP’s Management Board, who is responsible for the Reserved brand in Poland and abroad. “We are operating in a business where being on the lookout for new growth opportunities is key. We want to be present in the most prestigious fashion streets in Europe. Opening a clothing store in Berlin highlights our expansion strategy, whose objective is to open new stores in renowned locations in the largest German cities. By the end of the year, we will have opened 3 more RESERVED stores in this market.”   The first RESERVED store in Germany opened this September in the Palais Vest shopping mall in Recklinghausen, with new openings coming up in Stuttgart and Bremen in November, and Hanover in December. Germany is the first step in our expansion in the West. Simultaneously, we are taking our business to regions that are entirely new for us. This autumn, shops of all LPP brands will open in Croatia, and at the beginning of 2015 our flagship brand, RESERVED, will welcome its first customers in our very first Middle East location in Qatar.   LPP, a company listed on the Warsaw Stock Exchange from 2001, is one of the most dynamically developing clothing companies. In 2013 alone, the company sold over 70 million items of clothing, with the turnover reaching over 1 billion euro. It has been steadily growing its business in Poland and abroad for a number of years now, and has enjoyed remarkable success in the clothing industry. The company manages 5 well-known fashion brands, and plans to launch another in 2016. LPP runs a chain of 1500 stores, employing nearly 18,000 people in its offices and sales structures in Poland, other Central and Eastern European countries, and Shanghai. In March 2014, the company entered the WIG20 Index, which generates a significant part of the trading turnover on WSE. At the end of August, the company’s shares were included in the prestigious MSCI Poland Investable Market Index. The current market value of LPP is estimated at 4 billion euro.