Polish retailer Reserved is readying its UK debut in part of the former BHS flagship on London’s Oxford Street.
Hoardings are now up around the unit, where Reserved has taken 106,000 sq ft of space at the front of the ground, first and second floors. A spokeswoman told Drapers the store is set to open in the third quarter of this year, although could not confirm exact details.
The fast fashion retailer offers “practical, stylish and affordable” womenswear, menswear and kidswear priced from £5 for a T-shirt to £60 for a parka. It delivers new stock every three weeks into its more than 500 stores in eastern and central Europe, and the Middle East.
Reserved is one fascia of the LPP group, which also includes other fashion brands such as Cropp, Mohito, House, Sinsay and Tallinder.
LPP has big ambitions for international expansion, with the group aiming to make most of its income from overseas stores over the next few years.
The group had 1,668 stores in 18 countries by the end of September last year and aims to increase its trading space by 11% this year.
Group president Marek Piechocki said the firm is already the ”undisputed leader” in the Polish clothing market, where it has more than 1,000 stores, and so its development “is dependent on foreign expansion”.
“We need a strong, recognisable brand so that it is effective,” he added.
On the UK launch of Reserved, he said: “The opening of the store in such a prestigious place, where more than 200 million people pass by every year, will be another step to build the global Reserved brand.”
In addition to its launch in London, the group is also opening new franchise stores in Belarus and Kazakhstan, while its local partner in the Middle East, Azadea, will open new Reserved stores in Egypt and Qatar.
The group made sales of PLN1.5bn (£300m) for the third quarter of 2016, which was up by 18% year on year and its best result in two years. The firm reported that, for the first time in its history, Reserved stores outside its home country of Poland generated higher income than the domestic brand stores.
“We can clearly see that the positioning of our flagship brand as a global trademark affects not only our image but it also has a direct impact on our business, among others in Germany, which is now our fifth market in terms of revenue,” said LPP vice president and financial director of Przemysław Lutkiewicz.
“We assume that in two to three years our revenues will come principally from overseas.”
The company will also focus on further growth on Russia and the Ukraine, which currently generate 25% of its revenue.