Burlington Stores said it plans to open 100 new stores this year and sees an opportunity to reach 2,000 US stores in the future, the company said Thursday. Previously, Burlington (formerly known as Burlington Coat Factory) expected to build 1,000 stores. It currently has more than 750 outlets.
Burlington said in a press release that it was increasing its overall store target due to “the opportunity provided through accelerated retail disruptions and supermarket closures in the industry.”
Burlington offers women’s, men’s and children’s clothing, household goods, and shoes, and says it sells its wares for up to 60% less than other retailers’ prices. Only 25% of its transactions take place on credit cards, and the company’s primary shoppers are usually fewer than customers who shop at supermarkets and online competitors, according to a company. It does not sell products through its website. Instead, the site asks visitors to think of it as a guide to their next trip to its stores.
Burlington has what it calls a “opportunistic buying” approach to securing inventory. When designer brands produce too much clothing or supermarkets cancel orders, Burlington Steps to purchase remaining inventory. This approach allows it to rotate in new styles and fashions to attract shoppers to stores, analysts say, and contributes to its “treasure hunt” appeal.
Bargain hunters In the last years Turned into “off-price” retailers., Like Burlington(BURL)And the TJX(TJX), And parent TJ Maxx, Marshalls, and HomeGoods, and Ross Stores(feeling)Analysts say. Before the pandemic, online sellers and these chains were gaining market share versus traditional stores and clothing stores. The pandemic has accelerated the switch to online shopping and caused a wave of store closings.
Burlington expects these trends to work in its favor, “leading to further consolidation and additional closures of full-price retail stores,” CEO Michael O’Sullivan said in a call with analysts on Thursday.
With stores closed, “many shoppers, especially the wealthier and time-constrained shoppers, will migrate more of their spending online,” O’Sullivan predicts. “But we do expect other shoppers, more value-oriented shoppers, to find their way other than price.”
Burlington also said it will open smaller stores in the future that carry fewer goods and fewer operating costs than traditional stores.
David Ritter, managing director at Alvarez & Marsal Consumer and Retail Group, said that with its new smaller stores, Burlington might move to Pier 1 or Modell’s Sporting Goods. Both chains filed for Chapter 11 bankruptcy protection in 2020 and are closing all of their stores.
“Unfortunately, the few years have been tough for retail brick and mortar, so Burlington should have a wealth of options available,” Ritter said in an email. Burlington has in the past moved into stores previously held by chains such as K-Mart. Games for usAnd Bon Ton and Sports Authority, He said.