Business Description:
MISSION:
"Burlington Stores Inc (“Burlington”) aims to offer a wide range of apparel, accessories, and footwear products to consumers at prices that are considerably lower than those of its mainstream retail competitors."
History:
Burlington, formerly knon as Burlington Coat Factory, is an American national off-price department store retailer. Headquartered in Burlington Township, New Jersey, Burlington has more than 1,000 stores in 40 states and Puerto Rico and is the third largest off-price retailer after TJX Companies and Ross Stores.
The company CEO MICHAEL O'Sullivan joined Burlington in September 2019. Mr. O’Sullivan came to Burlington from Ross Stores
Products and services
Burlington offers branded apparel, footwear, accessories, home decor, and other merchandise at significantly lower prices than other retailers.
These great value items are sourced by taking advantage of disruptions and cancellations in the supply chain for this merchandise.
New and thrilling deals are consistently added to the collection, which is showcased in a self-service shopping atmosphere. “It’s the same branded item but up to 60% off versus other retailers”; this is a powerful consumer proposition and has driven off-price growth.
At Burlington, you’ll find a wide range of current, high-quality, designer, and name-brand merchandise at up to 60% off other retailers’ prices every day. Here are some highlights of what you can discover at Burlington:
Beauty Deals: Explore new beauty brands and find deals on makeup, soft slippers, sleepwear, and sweaters.
Baby Deals: From toys to baby blankets and adorable clothes, Burlington has you covered for little ones.
Handbags and Sandals: Spring in-store brings handbag bargains and sandal savings.
Fashion Basics: Stock up on essentials like storage, sweatpants, underwear, and socks without breaking the bank.
Everyday Deals: Burlington surprises with daily WOW! deals, including toys, boxed jewelry, ladies’ robes, men’s dress shoes, and more.
Burlington serves its customers primarily via its network of physical retail outlets. The Company operates a network of more than 670 stores across the US and Puerto Rico, each of which is staffed by dedicated sales personnel who deal directly with customers.
The Company also operates an online sales channel, through which customers can browse products, make purchases, and schedule deliveries on a self-service basis.
Business Model:
Burlington’s off-price model
Burlington Stores (BURL) is one of the key players in the US off-price retail space. According to the company, it follows an EDLP (every day low price) model, which helps its customers get up to 60%–70% savings off regular prices of similar merchandise sold in department stores and specialty stores.
Target market
The Company principally targets customers in the following groups:
Middle-class consumers, comprising consumers from middle-income families with a reasonable amount of disposable income to spend on fashion items;
Value-conscious consumers, comprising customers who are eager to find the best value for their money and who appreciate deals and discounts on quality items; and
Younger Consumers, comprising consumers under the age of 50, with customers aged between 18 and 30 notably a growing demographic for the Company’s stores.
Customer profile and product assortment
Burlington Stores’ target consumer belongs to a younger demographic, with an average age of 39 years and an average annual income of about $64,000. The company’s off-price rivals cater to customers whose average income is ~$77,000 per annum.
The company believes that its product assortment has more depth compared to its off-price rivals due to the larger store size and opportunistic, timely buys. Also, Burlington has more penetration in certain other categories like baby products and coats.
Sector operating:
Burlington Stores, Inc. operates in the Consumer Cyclical sector and the Apparel Retail industry. The company provides a wide range of fashion-focused merchandise, including women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products.
Key competitors & comparison