LPP, a Polish fashion retailer, has no plans to make’significant’ job reductions

By Patrycja Zaras

GDANSK (Reuters – Poland’s largest fashion retailer LPP does not plan to make “significant” job cuts, Przemyslaw Lutewicz, chief of finance, told Reuters.

Lutkiewicz, in an e-mailed statement, stated that “despite the expected slowdown”, they are not planning to make group layoffs or significant job cuts. He added that recent cross-board cost increases had forced them to reduce expenses in all areas.

Lutkiewicz, during a conference call with analysts, noted that the retailer’s third quarter results showed operating expenses increasing faster than sales. This was up 50% year-on-year. He called for cost savings measures.

LPP operates in almost 40 countries in Europe and Africa, and has more than 1,800 stores. He stated that LPP is currently reviewing its costs, starting with better staff management and ending up with lower energy consumption.

Lutkiewicz said that the retailer could also reduce its warehouses, and ship more online orders directly from stores, in an effort to cut logistics costs.

The retailer, which has brands Reserved and Sinsay, reported a 37% drop in net profit to 395.5m zlotys ($21.64m) in the third quarter, on top of a 40% increase to 4.37billion zlotys in revenue.

($1 = 4.4135 zlotys)

(Reporting by Patrycja Zaas; additional reporting by Mateusz Rabieg and Maria Gieldon; Editing: Kirsten Donovan