Published by Global Banking & Finance Review®
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
LPP aims to exceed financial targets, leveraging AI and logistics to counter e-commerce challenges, with significant investments in its Sinsay brand.
By Marta Maciag
GDANSK, Dec 4 (Reuters) - Polish fashion retailer LPP expects to meet or exceed its financial targets this year, its finance chief told Reuters, saying the expansion of Chinese e-commerce platforms into Europe had yet to significantly dent its business.
The upbeat expectations are supported by better cost management, notably through the robotization of its logistics centres and the implementation of AI, which yielded higher savings than expected, Chief Financial Officer Marcin Bojko said.
"The second half of the year, in particular, gives us many indications for (the outlook's) improvement over the current assumptions, especially regarding profitability indicators," he said ahead of the scheduled publication of LPP's third-quarter results next Thursday.
The group, based in the port city of Gdansk, has guided for annual revenue of at least 23 billion zlotys ($6.4 billion).
It plans to invest about 3.5 billion zlotys this year, 2.3 billion of which is reserved for new store openings, as it pursues aggressive expansion of budget brand Sinsay to challenge low-cost rivals, including Chinese fast-fashion platforms Shein and Temu.
HEAD TO HEAD
LPP is counting on faster delivery through local logistics centres, physical stores where customers can experience products firsthand, and full compliance with EU regulations in its battle against Chinese e-commerce players.
"We still have plenty of advantages over our Asian competition," Bojko said.
Unlike pure-play online platforms, LPP operates an omnichannel model that combines e-commerce with physical retail stores and automated logistics infrastructure.
LPP's largest logistics facility, located in Bydgoszcz in northern Poland, cut around 25% of its operational costs through the use of robotization, which has helped it keep pricing competitive while offering faster delivery than Chinese rivals, the CFO said.
FASHIONABLE AI
LPP is using virtual models and AI-generated backgrounds for Sinsay campaigns, eliminating the need for expensive location shoots. This will lead to savings of 1 million zlotys in its roll-out year alone, Bojko said.
"There is no turning back from implementing AI solutions, especially in a business of our format," he said.
($1 = 3.6227 zlotys)
(Reporting by Marta Maciag, editing by Milla Nissi-Prussak)
E-commerce refers to buying and selling goods or services using the internet. It includes online shopping, electronic payments, and internet banking.
Cost management involves planning and controlling the budget of a business or project. It aims to reduce expenses while maintaining quality and efficiency.
An omnichannel model integrates multiple sales channels, providing customers with a seamless shopping experience across online and physical stores.
AI in marketing uses artificial intelligence technologies to analyze data, predict consumer behavior, and personalize marketing efforts to improve customer engagement.
Financial targets are specific goals set by a company regarding revenue, profit, or other financial metrics that guide its business strategy.
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