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Reserved is taking its Western European expansion seriously, marking its UK debut by taking the 32k ft2 former BHS unit on London’s Oxford Street. The retailer, owned by LPP is already a household name in native Poland, where it has gained a reputation for trend-conscious and affordable fast fashion. This month’s spotlight will look at its goals for the UK and Europe and how well placed they are to achieve them.
On a recent site visit to the Oxford Street store which opened in September 2017, FSP analyst, Tish Hewitt noted the industrial layout of the store amplified by its concrete floor and complemented by a series of metal racks. The stock range was good and well merchandised making use of tables, racks and models – most comparable to the layout we are accustomed to in Zara. The store offers a range of Menswear, Childrenswear and Womenswear, the latter being described by its co-owner Piechicki as a “more feminine” alternative to retailers like H&M.
Building on the success of its Oxford Street store, Reserved has made its expansion plans clear. Harper Dennis Hobbs has been appointed to assist in finding new locations, with an initial focus on key large cities and regional shopping centres. Its online platform was launched on the same day as the Oxford Street opening and aims to more firmly establish the brand in the UK to support the retailer’s ambitious expansion plans.
Financially, Reserved are in a strong position. In the first half of 2017, its parent company reached 3bn Polish Zloty in turnover (£639m), a 15% increase on the same period the previous year (profits also doubled in this time). Reserved itself produced a 14% year-on-year increase in revenue. To meet the requirements of its planned expansion in the UK and Western Europe, LPP has plans to open another logistics centre and a head office in Gdańsk.
Looking to the future, Reserved is likely to pave the way for LPP’s other brands to enter the UK. This has already been evidenced by homewares retailer, ‘House’ which is making its UK debut in spring 2018 with the view of expanding across cities and shopping centres in the months to come. Keep an ear out for Cropp, Sinsay and Mohito as we are sure they are just around the corner too.
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