LPP

LPP's strategy is built on scaling Sinsay, omnichannel development, logistics automation, mobile apps, AI and international expansion. The company is not creating new brands - it is concentrating on lifting the scale of the existing portfolio.

Main directions

• Fast Sinsay store openings - around 1,000 new stores per year on average.
• Growth in smaller cities and retail parks - a segment global competitors do not serve as intensively.
• Expansion in Central-Eastern Europe, Southern Europe and Central Asia - markets with lower modern-retail penetration.
• Selective Western European development - Italy, Germany, Spain - testing potential in more competitive regions.
• Mobile-app and loyalty-programme development - direct customer relationship, behavioural data, lower acquisition cost.
• E-commerce growth and online/offline synergy - omnichannel as the foundation.
• Fulfillment-centre automation - expanding the warehouse-robot fleet from 555 to 3,500 units.
• AI in collections, product copy, personalisation and network planning - declared use across nearly all operating areas.

Logistics

LPP treats logistics as the foundation of further growth. In 2025 logistics and automation spend exceeded PLN 1.3 billion. LPP Logistics expanded its warehouse-robot fleet from 555 to over 3,500 units across Poland and Romania. The company also launched a new e-commerce warehouse in Romania.

2026 plan

The annual report sets out LPP's 2026 plan:

• Around 1,000 new stores, mostly Sinsay.
• Sales floor space growth of ~20% YoY.
• Revenue PLN 28–29 billion.
• EBITDA margin 23–24%.
• Net profit margin 9–10%.
• Net debt / EBITDA ~1.1x.
• Capex ~PLN 2.6 billion, of which ~PLN 1.7 billion on stores and ~PLN 0.7 billion on logistics.

Main strategic risks

• Rent and wage costs.
• FX rates.
• Transport and fuel costs.
• Port delays.
• Inventory and turnover.
• Price competition from Pepco, Primark, Shein, Temu.
• The risk that fast Sinsay expansion erodes margin faster than scale builds.

Verdict

The strategy is consistent with LPP's track record - scale, omnichannel and logistics. Success depends on operational discipline during the aggressive expansion phase and on holding gross margin as Sinsay's revenue share rises.