Burlington: This discount chain is planning to move to as stores are closing across America

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.

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.