LPP, a Polish fashion company which owns brands Reserved, Cropp, House, Mohito and Sinsay, is expanding to the Balkans. It has announced the penetration of a new market, Bosnia and Herzegovina.
In the past years, LPP has been called the fastest growing company in clothes retail. As shown by the latest financial reports, the results are pretty impressive. In the first nine months of 2018, the growth of net profit was 36.5% compared to the same period last year. Their brands, primarily their most famous one, Reserved, is present in 20 European markets, but also in Asia and the Middle East.
LPP opens most of its stores itself, but they are no strangers to franchising. In the Belarusian market, which they entered last year, they have signed franchise agreements with two partners – Rapa Group for Reserved and TDM Import for Cropp and House. In the markets of the Middle East, they mostly expand by opening franchise stores.
They haven't neglected the Balkans either. They first entered Croatia in 2014 and then Serbia in 2017 with Reserved and Sinsay. They are now continuing the expansion by bringing other brands from their portfolio. In September 2018, they opened their first store in Slovenia. They entered this market with Reserved, the brand with which they started their operations in Poland twenty years ago. As the company announces, they will continue increasing the number of stores in their current markets, and their 2019 agenda includes the penetration of the B&H market.
As already mentioned, they have primarily chosen the franchise model for their expansion in the Middle East. The franchise store in Israel, which opened in August not far from Tel Aviv, caused unexpected interest by customers. They therefore announced recently that another 18 franchise stores would open in that market by 2023. The franchisee in the Israeli market is H&O Fashion Chains Ltd.
In addition to the markets of Slovenia and Israel, LPP also entered the market of Kazakhstan in 2018 with the Reserved brand.
The Polish company's ambitious plans include the annual growth of retail space of 12 to 15%.
LPP currently has around 1,700 stores which take up over a million square meters. In Europe, they have 11 online stores. They have listed on the Warsaw Stock Exchange, the most developed stock exchange of Central and Eastern Europe, since 2001.
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