The Polish retail operator LPP Group, which manages such brands as Reserved, Cropp, House, Mohito and Sinsay, expects to open 10 new stores with a total area of 12,000 square meters in Ukraine in 2018, which would expand its network to 98 outlets, Interfax-Ukraine reports.
“Last year was very busy in terms of the network’s expansion in Ukraine. Over the last 12 months we opened 16 new outlets with a total area of 12,000 square meters in the country. Therefore, by the end of 2017 our chain in Ukraine has reached 88 outlets of all five brands, with a total area of 49,000 square meters”, - according to LPP’s press secretary Klaudia Skorlutowska, Interfax-Ukraine reports.
According to her, the corporation is very happy with the sales exhibited by Ukrainian outlets of LPP last year, which “encouraged further expansion of the chain in Ukraine”.
“The Ukrainian market is characterized by significant potential sales. The key aspect here is the country’s population, which is almost 50 million people. It is one of the largest markets where the LPP brands are present... Under the framework of the chain expansion, we expect to open another 10 stores in Ukraine: three Reserved shops, two Cropp stores and five Sinsay outlets. This would increase the total area of our stores to 61,000 square meters”, - K. Skorlutowska pointed out.
At the same time, Skorlutowska admits that LPP had to postpone the launch of online sales in Ukraine in 2017 due to difficulties related to customs clearance of shipments and to customer returns. Nevertheless, the retailer is currently working on the adaptation of its IT systems to the specific nature of the Ukrainian market.
LPP S.A. was established in 1995 and opened its first store (Reserved) in 2000. LPP SA Capital Group manufactures most of its goods (60%) in China and other Asian countries (around 30%). Apart from that, other goods are produced in Turkey (5%) and Poland (around 2%).
As of February 2018, the corporation operates over 1,700 stores across 18 countries of Central and Eastern Europe and the Middle East. By the end of 2016, the total area of LPP’s retail stores amounted to 921,000 square meters. The company’s chain in Ukraine is operated by a subsidiary – LPP Ukraina AO LPP.