Our Strategy

Group Strategy

The Group’s target is to consistently expand the geographical reach of its brands whilst enhancing the appeal of its offering and responding flexibly to changing customer needs. The foundation of these activities is the omnichannel model – one of the three strategic pillars of the Group’s development – which integrates brick-and-mortar and online sales into a cohesive system. In practice, this means further expansion of the store network whilst systematically strengthening the online channel. In the coming years, the Group will focus primarily on accelerating the expansion of Sinsay brand, whilst ensuring the maintenance of a strong position and stable growth for Reserved, Cropp, House and Mohito brands. Maintaining high profitability across the entire portfolio will remain a priority.

In addition to developing the omnichannel model, the Group bases its growth strategy on two further, complementary pillars: technological transformation and sustainable development. These defined directions address both market and digital challenges, as well as growing expectations in the areas of legislative, environmental and social responsibility.

1. Omnichannel organization

LPP is an integrated omnichannel organisation in which in-store and online sales form a single, cohesive system. The Company’s priority is to provide customers with a consistent, high-quality shopping experience – regardless of the chosen sales channel. In practice, this means the parallel development of the store network and e-commerce, whilst maintaining consistent communication, a coherent product range policy and operational synergy. A key element of this strategy is the development of mobile apps for individual brands, which build brand recognition and strengthen customer relationships. These tools are being rolled out successively across new markets and enhanced with features that support sales and build loyalty.

In the 2025–2027 strategy, the Group’s key focus is the dynamic expansion of Sinsay brand – both through the intensive expansion of the retail network and by further increasing its online availability. The brand’s strength is determined by: the omnichannel model, attractive pricing and proximity to the customer, regardless of where they live.

The implementation of these plans is based on the Group’s nearly thirty years of experience in building and developing Reserved, Cropp, House and Mohito brands. The operational, logistical and marketing expertise developed over the years now forms a solid foundation for further growth – both for Sinsay and for the mature brands in the Group’s portfolio, for which the targets remain to maintain a strong market position and wide availability of the product range across offline and online channels.

Growth through brands and the unique character of Sinsay

The Group consistently focuses on acquiring new customers and building loyalty among existing ones through the development of an attractive and diverse brand portfolio. Its foundation was Reserved brand, whose first store opened in 1998. Today, LPP manages five brands, catering to the needs of various customer groups. The range includes collections for women and men (Reserved, Mohito, Sinsay), children’s lines (Reserved, Sinsay) and offerings for teenagers (Cropp, House, Sinsay). Reserved, Cropp, House and Mohito operate in the mid-price segment, whilst Sinsay is developing in the value-for-money segment.

The Group has no plans to create new brands, but is focusing on strengthening and scaling its current portfolio, with particular emphasis on its youngest brand, Sinsay. The current business strategy is based on leveraging the brand’s potential, which in 2019 underwent a transformation from a brand dedicated to teenage girls into a broad, family-oriented shopping concept. The range has been expanded to include collections for women, men and children, as well as a non-apparel segment covering, amongst other things, homeware, pet accessories, cosmetics and sports products.

Sinsay combines the characteristics of a fashion brand with a value retail model, meeting the needs of customers looking for functional products at attractive prices. The strength of the concept rests on four pillars: a network of stores with convenient locations and modern designs – particularly in smaller towns – strong support for the online channel, including a mobile app and a loyalty program, a wide and stylish product range, and a competitive pricing policy.

The very positive reception of the brand’s new formula and the dynamic expansion of the stores network mean that Sinsay is becoming a key driver of the Group’s growth. By 2027, its share of revenue could reach as much as 65%, strengthening LPP’s position as one of the leaders in the region’s clothing market.

Development in new markets and increasing presence in small towns

Development through brands would not be complete if it were not accompanied by the expansion of our retail network, both stationary and online. Our goal is to diversify the Group’s revenues, i.e. to maintain the current position on the domestic market, but also to increase the share of foreign sales, especially in the region of South-Central Europe. Today, apart from Poland, we are present in six geographical areas, each of which has different development prospects:

• Poland is our domestic and at the same time the most important market, which generates a significant part of the Group’s revenues. Due to its high maturity and dense sales network in larger cities, we focus here on maintaining the current position of brands belonging to LPP, but above all on expanding the stationary sales network of the Sinsay brand in smaller towns.
• Central and Eastern Europe (CEE), includes countries such as: Czech Republic, Slovakia and Hungary. Similar to Poland, we focus here mainly on developing the stationary network in smaller towns, where we see development potential for the Sinsay brand. We are expanding the traditional network mainly based on retail parks.
• The Baltic Sea Region (BSR) countries where our brands are present are Lithuania, Latvia and Estonia. We consider all three countries as mature, where we focus on developing brands especially in smaller agglomerations, in retail spaces such as retail parks.
• The Eastern region i.e. Ukraine, Belarus and Kazakhstan, is a region where we see the potential for expansion for the Sinsay brand on the Ukrainian and Kazakh markets, which is why we have resumed the development of the brand’s retail space in these two countries.
• South-Eastern Europe (SEE) i.e. Romania, Bulgaria, Croatia, Serbia, Slovenia, Bosnia and Herzegovina, North Macedonia, Greece, Albania and Kosovo, are markets with great development potential for all LPP brands, but especially for the Sinsay brand. There, we are gradually expanding our stationary network, strengthening our presence in the Balkans.
• Western Europe (WE) i.e. Germany, Great Britain, Finland and Italy, are countries where the development of the sales network will be conducted conservatively. The exception is the Italian market, where we expect the development of the Sinsay brand to accelerate in the coming years.
• Middle East (ME) i.e. Egypt, Qatar, Kuwait, United Arab Emirates, Israel and Bahrain. Our presence with the Reserved brand in this region is based on cooperation with a franchise partner. At the same time, we continue online sales based on external sales platforms.

2. Technological transformation and logistics

The Group operates in the fashion sector, but in response to dynamic changes in the clothing industry and plans to significantly increase the scale of its operations, it is also consistently developing as a technology-driven organisation. It independently designs and implements IT solutions tailored to its business model, whilst adapting innovative market tools to its own needs.

Throughout the entire value chain – from collection design, through logistics, to sales and network development – the Group utilises modern technologies, including solutions based on artificial intelligence (AI). Technological transformation forms the foundation of the business strategy, enabling further strategic development, maintaining high operational efficiency, optimising the flow of goods, accelerating key customer service processes, increasing the operational capacity of the e-commerce infrastructure, and scaling the business without a proportional increase in operating costs.

AI algorithms are currently used, among other things, in collection creation, allowing for better analysis of trends and customer expectations; in e-commerce, where they support the generation of product content using virtual photo shoots or product videos; and in the personalisation of shopping experiences – for example, through virtual fitting rooms. AI also supports customer service through chatbots and the automation of frequently asked questions, as well as the planning of traditional store network expansion, helping to select locations with the greatest market potential.

Logistics remains a key area of investment, with automation and robotisation being rolled out across core processes. The Group’s strategy involves expanding Distribution Centers and e-commerce warehouses in Poland and abroad, and systematically increasing the use of innovative technologies within them – in particular autonomous robots and AI-based solutions. This allows, amongst other things, for the smoothing out of fluctuations in order volumes during peak demand seasons, shortening picking paths, optimising the use of warehouse space, streamlining goods flows and managing inventory more effectively, whilst maintaining cost discipline during periods of lower demand. As a result, these solutions translate into a marked increase in sales efficiency both online and through traditional channels, as well as a significant reduction in unit logistics costs.

3. Sustainable development

In an era of growing awareness of the importance of responsible business and dynamic regulatory changes in the clothing industry, including: the EU’s Textile Strategy and the introduction of obligations related to Extended Producer Responsibility (EPR), the Company consistently integrates sustainable practices into its day-to-day operations. The Group’s development is based on the principles of sustainable operations covering all processes – from design and production, through distribution and sales, to activities aimed at giving garments a ‘second life’ after they have reached the end of their useful life with customers.

This comprehensive approach addresses the industry’s current challenges – growing EU regulatory expectations, customer pressure for supply chain transparency, and climate and social changes. The Group strives to reduce the negative environmental impact of its operations whilst educating customers and business partners, promoting responsible purchasing choices and a shared commitment to a circular model of clothing use. At the same time, it is conducting research into the possibility of developing an effective and scalable method for recycling used polyester fabrics and fabric blends based on the ‘textile-to-textile’ concept. For several years, it has also been collecting second-hand clothing in its stores, which is then returned to circulation and donated to charitable organisations or, in accordance with the textile waste hierarchy, subjected to upcycling, downcycling or recycling.

In 2022, the Company joined the global Science Based Targets initiative, which supports the private sector in efforts to combat global warming, and developed detailed decarbonisation targets that were scientifically assessed according to the SBTi methodology. In 2023, LPP received positive verification of its greenhouse gas emissions reduction plan up to 2030, covering key categories responsible for its carbon footprint. As part of the plan, the Group intends, among other things, to reduce Scope 1 and Scope 2 emissions by 42% compared to the 2021 baseline year, and Scope 3 emissions – resulting from the purchase of goods and services – by 51.6% per unit of product.

Sustainable development also encompasses social initiatives carried out primarily through the LPP Foundation, established in 2017. The Foundation supports children and young people in difficult life situations, people with illnesses, medical facilities, and organisations caring for those at risk of social exclusion. It pays particular attention to supporting the mental health of children and young people – one of the most significant social challenges of the 21st century.

At the same time, the Company is constantly committed to ensuring responsibility throughout the supply chain and respect for human and labour rights. To this end, it is increasing the number of local branches in production regions, which enables better monitoring of conditions at suppliers, more effective auditing, and an ongoing response to the challenges faced by business partners and their employees. This approach enables the Company to meet both EU regulatory requirements and growing consumer expectations regarding responsible and transparent fashion.