About BURLINGTON COAT FACTORY WAREHOUSE CORPORATION

Burlington Stores (dba Burlington Coat Factory) takes the "Brrr!" out of your life. The clothing retailer, which made its name selling coats, operates more than 590 no-frills retail stores (averaging 76,000 square feet) offering off-price current, brand-name clothing in about 45 states plus Puerto Rico. Although it is one of the nation's largest coat sellers, the stores also sells a full wardrobe of products, including children's apparel, bath items, furniture, gifts, jewelry, linens, and shoes. Sister chains include a pair of higher-priced Cohoes Fashions shops and about a dozen MJM Designer Shoe stores. Burlington Stores was founded in 1972.

Operations

About 98% of the company's sales are rung up at its Burlington Coat Factory Warehouse stores. Women's ready-to-wear apparel is its biggest earner at 24% of sales, followed by accessories and shoes (22%), menswear (20%), youth and baby apparel (16%), home (12%), and coats (6%).

Its three other smaller businesses -- Cohoes Fashions (off-price designer apparel), MJM Designer Shoe, and Super Baby Depot -- account for the rest. As its name suggests, Super Baby Depot's two stores sell baby clothing, accessories, furniture, and everything else a baby might need in the middle to higher price range. The company's MJM Designer Shoe chain has stores in New Jersey and New York and several other states. Like its larger sister chain, MJM Designer Shoes sells brand names at significant discounts. The company also sells merchandise online at burlingtoncoatfactory.com and babydepot.com.

Geographic Reach

The New Jersey-based off-price retail chain has stores in 45 states and Puerto Rico. Its two primarily distribution centers, which ship about 95% of its merchandise, are located in Edgewater Park, New Jersey, and San Bernardino, California.

Sales and Marketing

The chain is known for its year-round selection of about 10,000 to 20,000 discounted coats (compared to about 1,500 to 2,000 coats at department stores). Burlington Coat Factory takes less of a markup than its department store competition and has lower profit margins than other clothing retailers. It buys the coats early in the season (up to five months before department stores) to lock in lower prices.

Financial Performance

The company has recorded increasing revenue in the last six years.

In fiscal 2017 (ending January), revenue climbed 9% to $5.6 billion, with gains spread evenly between comparable and non-comparable store sales. The company attributes the increase in its comparable store sales to an improved execution of its business model and the transition of its fragrance business from leased department rental income to an owned business.

Net income ticked up 43% to $215.9 million due to higher revenue and a reduction in selling, general, and administrative expenses as a proportion of total sales.

Cash from operating activities leaped 84% to $602.4 million on the back of higher net income and lower income tax and compensation payments.

Strategy

Burlington's primary growth driver is store expansions. In 2016, the company added a further 25 stores, taking its store base to nearly 600. Burlington's goal is to have 1,000 stores in operation.

Burlington Coat Factory's off-price niche has resonated with consumers looking for bargains, both during the recession and continuing during the recovery. To grow, the company is focusing on its core customers: 25-49 year-old women.

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BURLINGTON COAT FACTORY WAREHOUSE CORPORATION

1830 N Route 130
Burlington, NJ 08016-3020
Phone: 1 (609) 387-7800
Fax: 1 (609) 239-8242

Stats

  • Employer Type: Public
  • Cao: Marc Katz
  • Ceo: Martin Kiehm
  • Chief Operating Officer Director: Mark Nesci
  • 2014 Employees: 24,065

Major Office Locations

  • Burlington, NJ