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Polish fashion retailer LPP has reportedly revealed plans to strengthen its footprint in the European Union (EU).
The retailer is planning to enter Italy, Greece and Cyprus next year and is also considering taking its Reserved brand to Germany and the UK.
The plans come after LPP suspended its operations in Russia and Ukraine due to the ongoing conflict in the regoin.
In February, the retailer closed all 139 of its stores in Ukraine, subsequently closing all its brands’ stores in the Russian market late last month.
The company has already suspended the transport of goods, as well as all investments and development plans in Russia. It has also stopped online sales of its entire brand portfolio.
LPP is a clothes manufacturing company operating in Central and Eastern Europe.
The company manages five brands, namely Reserved, Cropp, House, Mohito and Sinsay.
Reuters quoted LPP chief financial officer Przemyslaw Lutkiewicz as saying: “After the difficult period of the pandemic, we faced further challenges related to losing a significant part of the sales network.
“Despite this, the company’s situation remains stable, and the expected revenues for the current financial year, more than zl16bn ($3.76bn), allow us to think calmly about the future of LPP.”
Lutkiewicz added: “At the same time, we want to debut in new markets, especially in the southern European region, where we see growth potential for our brands.”
LPP has also said it plans to develop its e-commerce business this year.
The company’s digital sales exceeded 30% of its total sales for the fourth quarter of the financial year, which ended on 31 January.
LPP operates a network of more than 2,000 stores, distributing more than 259 million pieces of clothing to three continents.