EU parcel duty boosts Sinsay online sales, LPP finance chief says

By Reuters News

By Marta Maciag

GDANSK, Sept 22 (Reuters) - Online sales growth at LPP's LPPP.WA budget brand Sinsay has continued to pick up pace since the second quarter ended in July, the Polish fashion retailer's finance chief told Reuters, in the clearest sign yet that the European Union's new duty on small parcels was pulling shoppers back from Chinese platforms.

The EU scrapped duty-free treatment for parcels worth less than €150 from the start of July, replacing it with a flat €3 duty covering the bulk of e-commerce flows into the bloc.

"Now I can honestly say that we are seeing this impact," Marcin Bojko said in an interview at LPP’s headquarters in Gdansk. "I don't think we have seen such (growth) levels since 2024."

ACCELERATING GROWTH

LPP's e-commerce growth has suffered from lower marketing spending and a fire at its Romanian warehouses that lengthened delivery times across southeastern Europe earlier in 2026.

A replacement distribution centre opened in July, but the damage resulted in nearly flat online sales in the first quarter. They regained ground in the second quarter that ran through July, jumping 16.4% year-on-year.

At Sinsay, e-commerce growth was in line with the broader group in the second quarter, before rising to between 20% and 30% from mid-August and gaining even more in September.

Bojko said the new EU rules were levelling the competitive conditions for local players and Chinese sellers like Shein 0625.HK or Temu. "Earlier periods were distorted. Now we operate on equal terms."

However, the situation continues to shift as Chinese companies such as Shein open warehouses in Europe, which improves their delivery speed but caps the amount of stock, he added.

"I don’t think the current dynamics will become the new norm permanently," Bojko said, expecting the market to stabilize, though he saw Chinese players returning to earlier levels as unlikely.

SHOPPERS TRADE UP

Beyond the tariffs, Bojko said consumer behaviour was experiencing a broader shift: while prices still need to be attractive, shoppers are now more willing to pay for better quality.

Premium collections of LPP's Reserved brand, which use natural materials such as linen and silk, saw more than 30% year-on-year growth at the start of the autumn-winter season, both in stores and online, especially in larger cities, Bojko said.

Shares in Poland's largest fashion retailer jumped 8% on Friday after it reported a higher-than-expected second-quarter profit and raised its margin outlook.

The country's top e-commerce platform Allegro also raised its growth targets last week, citing EU duties on Chinese platforms among the reasons.

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