LPP Logistics expands distribution center in Romania
Launched in January this year, LPP Group’s first cross-border Distribution Center in Romania was recently expanded by an additional 42,000 sqm to more efficiently handle the growing order volumes resulting from the group’s growth plans in Southern Europe. The center is operated by the group's logistics arm.
The LPP Group’s Distribution Center, located at CTPark Bucharest West near Bucharest, plays an important role as the company’s logistics hub. The facility supplies LPP brand stores as well as two Romanian fulfilment centers dedicated to handling online orders in the region.
A strategic advantage of the Distribution Center’s location is its close proximity to the Black Sea port of Constanta, which allows LPP Logistics to diversify sea transport routes and directly receive the Group’s orders from Asian suppliers, the company said.
The automation solutions used at the center support the company’s dynamic expansion in key sales markets such as Romania, Bulgaria, Hungary, Croatia, Macedonia, Serbia, and Greece. In Romania, the group operates brands like Reserved, House, Mohito, Cropp, and Sinsay.
An additional advantage is the adjacent fulfilment center, launched in July this year. This solution supports the development of LPP’s omnichannel sales, speeding up order fulfilment and boosting operational efficiency.
“We can already say that YoY 2024 was a breakthrough in terms of strengthening our overseas distribution and sourcing network. Not only have we launched our first overseas Distribution Center, but we have also decided to expand it. This is a natural step resulting from the strategic importance of the facility in Romania and the development potential of this region, which remains one of the most promising for the Group’s business,” says Sebastian Sołtys, president of the management board of LPP Logistics.
The Distribution Center in Romania, launched in January this year, initially comprised 65,000 sqm of warehouse space. In July, part of this space was adapted for the newly established fulfilment center.
As a result, upon completion of the expansion, the total area of the center increased to 91,000 sqm., with LPP Logistics now occupying over 131,000 sqm within the CTPark Bucharest West complex. Currently, the warehouse allows for the storage of up to 800 thousand cardboard boxes.
The company says that the center allows as many as 900 physical stores to be serviced simultaneously. The facility has already provided employment to 300 people of various specialisations. The company is still recruiting for new positions, and current announcements are available on the website.
The completed expansion is part of the company’s growth strategy to increase the warehouse space managed by LPP Logistics to 700,000 sqm by the end of 2025. The company plans to spend PLN 450 million in the span of two years to achieve this goal.
(Photo source: the company)
