LPP Logistics has launched the second e-commerce warehouse in Romania
In response to the dynamic growth of LPP brands in the markets of Southern Europe, LPP Logistics has decided to launch another e-commerce warehouse in this region. The 40,000 sqm facility in Romania is already the second fulfillment center managed by LPP Logistics in this country, which will allow for additional processing of up to 400,000 orders per day. The strategic location of the warehouse in close proximity to the Group’s distribution center is crucial for strengthening LPP’s omichannel sales – it will speed up order fulfilment and increase operational capabilities in the region.
For several years, Polish clothing manufacturer LPP has been strengthening its presence in Southern Europe, and Romania remains one of the company’s key sales markets. Building brand recognition in the region is supported by both the intensive expansion of the sales network and the development of e-commerce, including the growing popularity of mobile applications. Over the past year, the company has expanded its availability in traditional outlets to over 500 stores and, with the start of 2024, launched online sales of all brands in Bosnia and Herzegovina. Seeing further growth potential, the company has planned to open a further 200 stores in Southern Europe this year. Strengthening e-commerce based on efficient logistics and the third warehouse investment in Romania will also be an integral part of the ongoing omnichannel strategy. In response to these challenges, just six months after launching its first overseas distribution center in the country, LPP Logistics has decided to provide additional online sales support.
– The recognition of LPP brands in Southern Europe built for several years now is paying off in the form of positive results and optimistic sales forecasts. For logistics, this means the need to optimise processes and adapt them to growing volumes, so that at the final stage the customer can enjoy product availability and fast delivery. In order to meet these expectations, we have decided to launch the second e-commerce warehouse in Romania, which will allow us to increase our operational capacity and speed up order fulfilment. This is our third investment in this country, one of the fastest growing countries in the region. An unquestionable advantage of this location is its strategic location in relation to the Black Sea port of Constanta, which makes it possible for us to diversify our shipping paths and receive the Group’s orders directly from Asian suppliers – comments Sebastian Sołtys, president of the management board of LPP Logistics.
LPP Logistics will use the new location to streamline the delivery of online orders to customers in Romania, Bulgaria, Serbia, Bosnia and Herzegovina, Greece, and Hungary. The 40,000 sqm facility, with a storage capacity of up to 4 million items, is located at CTPark Bucharest West near Bucharest, in the municipality of Bolintin-Deal, in direct proximity to the distribution center, which is its source of supply.
– Thanks to its proximity to the distribution center and the close co-operation of the facilities based on a common stock, we can optimise the delivery process of online orders and speed up the response to customer needs. The launch of the second e-commerce warehouse in Romania will enable us to handle up to 400,000 orders per day. The use of artificial intelligence algorithms in the order picking process, thanks to which we can categorise products appropriately, taking into account the optimum order time and pick-up times by couriers, also has a significant impact on reducing delivery times – comments Daniel Potoczniak, director of e-commerce logistics at LPP Logistics.
In order to optimise the order fulfilment process, the new warehouse features five 40-metre automatic conveyor lines. There are also plans to install a shipping sorter, which will further streamline work in the warehouse. Ultimately, the facility will provide employment to up to 1,500 people. It will also include sustainable solutions, such as photovoltaic panels, a rainwater recovery system and electric car charging stations. Thus, the facility is expected to meet modern building standards according to BREEAM certification.
By the end of 2025, LPP Logistics expects to spend a total of PLN 450 million on the development of its procurement and distribution network, including an increase in warehouse space to 700,000 sqm. The investment in Romania, realised as part of these plans, together with the new warehouse near Bydgoszcz, which was launched in July this year, will allow the clothing group to tap into the potential of e-commerce development at home and abroad.
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LPP Logistics is a logistics operator managing LPP Group’s procurement and distribution network comprising distribution centers and Fulfillment Centers with a total area of over 600,000 square metres. It operates on three continents providing a full range of logistics services – from sea, rail and road freight, through the operation of its own customs agency, to advanced warehouse logistics using modern systems such as WMS, warehouse automation and Warehouse Intelligence solutions based on artificial intelligence algorithms.
LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central Europe. For 30 years, it has been successfully designing and selling the collections and accessories in Poland and abroad. LPP manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay, whose offer is available today in stationary and online stores in 40 markets worldwide. The company has a chain of nearly 2400 stores with the total area of over 2 million m2 and distributes the products to 3 continents every year. LPP also plays an important role as it provides employment to 43 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.