According to an LPP interim report, in Q4 2016, the Poland-based fashion retailer noted positive sales in its CIS region (Russia and Ukraine). LPP's sales in Russia grew by 41%, while in Ukraine they increased by 9%, year on year. Despite the ongoing economic crisis in Russia and Ukraine, the growth in like-for-like sales in both countries remained in double digits (in local currency terms) in Q4 2016. In addition, LPP saw sales per square metre in its Russian stores grow by 11% while in its Ukrainian outlets they increased by 14% when measured in the local currency and compared to Q4 2015.
In the entire 2016, in turn, LPP saw consolidated sales revenues of PLN 1,043.8m (€242m) in Russia, up 25%, year on year. At the same time, in Ukraine, the company also registered yearly growth in its sales revenues, of nearly 20%, totalling PLN 225.5m (€52m). Russia is the second-largest market for LPP after its home base of Poland. The share of LPP’s total sales generated by its Russian division was over 17% in 2016, while for Ukraine it was nearly 4%.
On an annual basis, the total combined area grew by 7% in CIS region in 2016. In 2017, LPP wants to increase the total area of its CIS network by 20%, year on year. Thus, it wants to accelerate its development in Russia and Ukraine, increasing its total area in these countries by 18% and 21%, respectively.
According to LPP website, the retailer has 368 stores in the CIS region, including 296 units in Russia and 72 in Ukraine. It is worth noting, that LPP launched seven new stores in Russia in Q4 alone, including four units in Moscow and three in St. Petersburg.
What is more, LPP intends to launch online stores for its five brands in Russia and Ukraine in H2 2017.
|LPP retail chain in Russia by brand, 2016|
|Number of stores||Area (m2)|