KYIV. March 10 (Interfax-Ukraine) – Poland’s LPP Group, a large retail operator the RESERVED, Cropp, House, MOHITO and SiNSAY clothing brands, intends to lease at least 8,000 square meters of new space for new own stores in Ukraine in 2017.
“After crisis on the Ukrainian market we have a careful approach to our development. We stake on the development of our chain on the market conditions and flexible rental conditions. We plan to lease around 8,000 square meters of new space in Ukraine. We are holding talks about our presence in the following projects: Lavina Mall in Kyiv and Victoria Gardens Lviv,” LPP Group Spokesperson Marta Chlewicka told Interfax-Ukraine.
She said that at present Ukraine is fourth in the number of stores of LPP brands in the world (72 stores).
The company said that it has decided to strengthen its positions in Ukraine via development of an online shop.
“Products will be delivered from our logistics center in Poland, Pruszcz Gdanski,” she said, adding that the company wants to launch the online shop in H2 2017.
The shop would have products of all LPP brands – RESERVED, Cropp, House, MOHITO and SiNSAY.
LPP Group said that its revenue from sales in Ukraine in 2016 totaled PLN 255.55 million (around $55.19 million under current exchange rate).
According to its financial report, in 2015 sales revenue in Ukraine was PLN 188.363 million. Thus, the company saw an almost 20% rise in revenue in 2016.
Chlewicka also said that the share of revenue in Ukraine was 3.7% of total revenue in 2016.
According to a financial report of the company for Q4 2016, LPP Group wants to lease 107,800 square meters of new space, boosting its store space by 11.7%.
Earlier LPP Group said that the company intends to launch online sales of all own brands in Ukraine in 2017.
Online sales revenue in 2016 grew by 118% compared to 2015, and sales per square meter increased by 8%.
Total revenue grew by 18% in 2016, to PLN 2 billion.
LPP S.A. was founded in 1995. Its first store (Reserved) was opened in 2000.
As of February 2017, the company has over 1,700 stores in 18 countries of Central and Eastern Europe and the Middle East.
