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 560 no-frills retail stores
(averaging 77,000 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. Founded in 1972, Burlington
Coat Factory went public in 2013.
About 98% of the company's sales are rung up at its Burlington
Coat Factory Warehouse stores. Cohoes Fashions (off-price designer
apparel), MJM Designer Shoe, and a pair of Super Baby Depot stores
account for the rest. As its name suggests, Super Baby Depot sells
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
The off-price retail chain has stores in 45 states and Puerto
Rico. Its two primarily distribution centers, which ship about 93%
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. Unlike other off-price chains, BCF buys directly from
manufacturers and does not rely on leftovers or closeouts.
The company has recorded increasing revenue in the last five
years, and in fiscal 2016 (ending January) posted 6% growth $1.3
billion. Store opening and an increase in comparable store sales
were the driving forces behind the sales growth. Net income grew
128% to $150.5 million on the back of higher sales, the latest in a
trend of increasing net income. Cash flow from operating activities
likewise grew, by 8% to $327.5 million.
As part of their growth strategy, the company added 28 stores
and expects to open 25 net stores in 2017.
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.