LPP says EU parcel duty lifts Sinsay online sales growth

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EU duty boosts Sinsay sales

Highlights

LPP reports Sinsay online sales accelerated to 20–30% growth from mid-August and further in September after the EU's July 3 euro parcel duty was introduced.
Group e-commerce revenue rose 16.4% year-on-year in the second quarter through July, recovering from nearly flat online sales in Q1 and recent operational disruptions.
LPP shares jumped 8% after announcing higher-than-expected Q2 profit and a margin outlook increase, with investor sentiment boosted by EU customs changes impacting Chinese rivals.

Sinsay sales accelerate after July rule change

As reported by Reuters, LPP finance chief Marcin Bojko says online sales growth at Sinsay has continued to strengthen since the second quarter ended in July, offering one of the clearest signs so far that the European Union's new parcel duty is pushing some shoppers back from Chinese platforms.

The EU removed duty-free treatment for parcels worth less than 150 euros from the start of July and replaced it with a flat 3 euro charge covering much of e-commerce traffic into the bloc. Bojko says LPP is now seeing a visible effect from the measure and adds that growth levels are the strongest the company has seen since 2024.

LPP's online business has been under pressure earlier in 2026 because of lower marketing spending and a fire at its Romanian warehouses, which lengthened delivery times across southeastern Europe. A replacement distribution centre opened in July, and after nearly flat online sales in the first quarter, group e-commerce revenue in the second quarter through July rose 16.4% year-on-year.

At Sinsay, online growth matches the broader group in the second quarter before accelerating to between 20% and 30% from mid-August and rising further in September. Bojko says the new EU rules are creating more equal competitive conditions for local retailers and Chinese sellers such as Shein and Temu.

Market impact extends beyond tariffs

Bojko says the competitive landscape continues to evolve as Chinese companies including Shein open warehouses in Europe, improving delivery speed even if inventory held locally remains limited. He says the current pace of change is unlikely to become a permanent norm, although he also sees a full return by Chinese platforms to earlier conditions as unlikely.

He also says consumer behaviour is shifting more broadly, with shoppers still focused on attractive prices but increasingly willing to pay for better quality. Premium collections at LPP's Reserved brand, using natural materials such as linen and silk, record more than 30% year-on-year growth at the start of the autumn-winter season in stores and online, particularly in larger cities.

Investor reaction has also been strong. Shares in Poland's biggest fashion retailer jump 8% on Friday after the company reports a higher-than-expected second-quarter profit and raises its margin outlook, while Allegro, Poland's largest e-commerce platform, raises its own growth targets last week and cites EU duties on Chinese platforms as one factor.

In our earlier article on Kingfisher’s upgraded full-year outlook, we covered how the home improvement group raised profit guidance after first-half earnings improved on margin expansion, cost control and a one-off business rates refund. We also noted that market share gains in the UK, Poland and Spain helped offset weaker trading at Brico Dépôt France, highlighting how retailers are navigating uneven demand while protecting profitability.

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