UK Edition
Polish fashion brand to ramp up UK offering as rivals go to the wall
LPP, the fast-growing Polish fashion group that took over BHS’s Oxford Street flagship last year, is poised to become a major presence on struggling British high streets with plans to open dozens of stores in the coming years.
Marek Piechocki, chief executive, told The Sunday Telegraph that while the company’s UK operations are still loss-making after opening last September, it intends to open many more stores in the near future.
LPP, which designs and makes clothes under five brands including its main label Reserved, is primarily based in eastern and central Europe but has been turning its sights westward in recent years, with around 20 stores in Germany and plans for flagships in Milan and Paris.
The expansion is in the works despite carnage on British high street.
New Look, a rival mid-market fashion brand, went through insolvency proceedings earlier in the year and House of Fraser was rescued from administration by Mike Ashley’s Sports Direct last month after struggling with soaring labour and property costs.
Referring to LPP’s UK business, Mr Piechocki said: “For sure right now we have losses, everybody does for their first couple of years. When H&M entered Germany, which is today their biggest market, they had losses for seven years.”