Polish fashion retailer LPP says it’s on track to meet — or even beat — its financial targets for the year, despite growing competition from Chinese online platforms in Europe.
CFO Marcin Bojko told Reuters that new technologies, including AI and robotics in logistics centers, have helped the company save more money than expected and strengthen profitability.
Bojko said the outlook for the second half of the year looks especially promising. LPP, headquartered in Gdansk, has forecast at least 23 billion zlotys ($6.4 billion) in annual revenue, with detailed Q3 results expected next Thursday.
This year, the company plans to invest 3.5 billion zlotys, including 2.3 billion zlotys dedicated to opening new stores. Much of this expansion focuses on its budget-friendly brand Sinsay, aimed at competing with fast-growing Chinese fashion platforms like Shein and Temu.
LPP hopes to maintain an edge through faster delivery from local warehouses, physical stores where customers can see products in person, and full alignment with EU regulations — areas where many Chinese competitors lag.
“We still hold many advantages over our Asian rivals,” Bojko said.
Unlike online-only platforms, LPP follows an omnichannel strategy, blending e-commerce with traditional retail locations and automated logistics. Its biggest logistics hub, located in Bydgoszcz, has already reduced operational costs by about 25% through robotization — helping the company stay price-competitive while delivering orders faster.
LPP is also leaning into AI technology for marketing. By using virtual models and AI-generated backgrounds for Sinsay campaigns, the company expects to save around 1 million zlotys in the first year alone.
“There’s no going back from AI adoption, especially for a business like ours,” Bojko added.
