LPP Logistics has expanded its Distribution Centre in Romania
Launched in January this year, LPP Group’s first cross-border Distribution Centre in Romania was recently expanded by an additional 42,000 sq. m. The new warehouse space will allow LPP Logistics to more efficiently handle the growing order volumes resulting from the Group’s ambitious growth plans in Southern Europe. After the completed expansion, the facility has reached a size of 91,000 sq. m., enabling the shipment of up to 6 million assortment pieces per week.
The LPP Group’s Distribution Centre, located at CTPark Bucharest West near Bucharest, plays an important role as the company’s logistics hub for Southern Europe. The facility supplies LPP brand stores as well as two Romanian fulfilment centres dedicated to handling online orders in the region. A strategic advantage of the Distribution Centre’s location is its close proximity to the Black Sea port of Constanta, which allows LPP Logistics to diversify sea transport routes and directly receive the Group’s orders from Asian suppliers. Such a solution also allows the optimisation of transport routes, which is crucial in turbulent times and situations of disruption to global supply chains. The automation solutions used at the centre support the company’s dynamic expansion in key sales markets such as Romania, Bulgaria, Hungary, Croatia, Macedonia, Serbia, and Greece. An additional advantage is the adjacent fulfilment centre, launched in July this year. This solution supports the development of LPP’s omnichannel sales, speeding up order fulfilment and boosting operational efficiency.
– We can already say that YoY 2024 was a breakthrough in terms of strengthening our overseas distribution and sourcing network. Not only have we launched our first overseas Distribution Centre, but we have also decided to expand it. This is a natural step resulting from the strategic importance of the facility in Romania and the development potential of this region, which remains one of the most promising for the Group’s business. The growing recognition of LPP brands in Southern Europe motivates us to continuously increase our operational capacity in order to meet the expectations of our customers in the best possible way – comments Sebastian Sołtys, president of the management board of LPP Logistics.
The Distribution Centre in Romania, launched in January this year, initially comprised 65,000 sq.m. of warehouse space. In July, part of this space was adapted for the newly established fulfilment centre. As a result, upon completion of the expansion, the total area of the centre increased to 91,000 sq. m., with LPP Logistics now occupying over 131,000 sq. m within the CTPark Bucharest West complex. Currently, the warehouse allows for the storage of up to 800,000 thousand cardboard boxes. Thanks to the use of state-of-the-art logistics solutions and equipping the facility with optimally designed storage equipment, its capacity allows for the shipment of up to 6 million assortments per week.
The centre also has two state-of-the-art automatic sorters, each 140 m long, which increases the facility’s operational efficiency several times over. In the receiving and dispatch area, a line of automatic conveyors integrated with label applicators and volumetric gates has been designed. The dispatch gates, on the other hand, have been equipped with telescopic conveyors, which significantly speeds up the car loading process. Supporting the warehouse operation is also provided by a fleet of approx. 80 multifunctional forklift trucks. The technological solutions implemented here not only ensure that as many as 900 physical stores can be serviced simultaneously, but also significantly support the work of the entire team.
The completed expansion is part of the company’s growth strategy to increase the warehouse space managed by LPP Logistics to 700,000 m2 by the end of 2025. The company plans to spend PLN 450 million in the span of two years to achieve this goal.
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LPP Logistics is a logistics operator managing LPP Group’s procurement and distribution network comprising distribution centres and Fulfillment Centres 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 2500 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.