LPP, the owner of the RESERVED clothing brand, opens the largest store in its history. The flagship store in Stuttgart will have a surface area of nearly 4 thousand sqm. It is a milestone in building the brand position on Europe’s largest clothing market, on which RESERVED has already been present for a year. The investment in brand recognition in Germany is planned for the next four years, during which LPP also plans to open flagship stores in several other Western European countries.
The LPP company, owner of 5 recognizable clothing brands – RESERVED, Cropp, House, MOHITO and SiNSAY – in 2014 made its debut in Germany. It is the largest in Europe and the fourth largest clothing market in the world. The presence of the RESERVED brand in our western neighbours’ country is the first stage of the implementation of development strategy, which consists in the global expansion of LPP. In the years to come, the company is also planning to open flagship stores in European fashion capitals, and, among other things, locations such as Paris, Milan or London are taken into account. Currently, however, the company focuses primarily on the German market.
For our operations in Germany, building brand recognition is of key importance. In the first year, we spent for this purpose almost 4 million euro, and in the next year outlays on marketing activities will be similar – says Piotr Dyka, Vice-President of LPP responsible, among other things, for the RESERVED presence in Germany. We have entered a mature market, in which our global competitors have been present for years, and customers are accustomed to an extensive choice and have high demands. The opening of the first flagship store is for us a very important event – we are now visible on the most prestigious street of one of the largest German cities. The mere process of building a strong market position in Germany is a project planned for 4 years. By 2017, we want to open there about 30 RESERVED stores – he adds.
The opening of the flagship store in Stuttgart is the most spectacular event in this year’s investment plans of the company. In the three-storey building with the surface area of 3.9 thousand sqm, the largest collection of clothes and accessories in the history of the brand were presented – in total, under one roof RESERVED customers have a choice of 137 thousand products. In this record-breaking in many respects store more than 80 people will be employed.
Due to the nature of the German market, where it is popular to do shopping in city centres, expansion strategy assumes that as many as half RESERVED stores in this country will be established outside large shopping centres. Since September 2014, the company has launched 9 stores in Germany: 7 located in shopping centres (including e.g. in Bremen and near Düsseldorf) and on 2 high streets: in Leipzig and Stuttgart. The latter, opened in the capital of Baden-Württemberg, deserves to be called the first flagship RESERVED store in Germany. Until the end of 2015, openings in slightly smaller centres are scheduled – including e.g. Aachen and Mannheim, resulting i the fact that the brand network in the country at the end of the year will include 12 stores. Next year, RESERVED products will be also available in Hanover, Cologne and Munich, and at the beginning of 2017 the so-called flagship store will be opened in Berlin.
LPP SA, a company listed on the Warsaw Stock Exchange since 2001, is one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 20 years, the company has been consistently operating in Poland and abroad, being successful on the demanding clothing market. LPP SA manages 5 popular fashion brands (RESERVED, Cropp, House, MOHITO and SiNSAY), a network of nearly 1,600 shops, creating workplaces for nearly 20 thousand people at its offices and sales structures in Poland, Europe, Asia and Africa. The company invests and acquires new markets in 2015, opening its first store in Egypt, Kuwait and Qatar. In 2014, the company advanced to the stock exchange index WIG20, which generates a significant part of the turnover on the Warsaw Stock Exchange, and belongs to the prestigious MSCI Poland index.
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