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Burlington Stores, Inc. (BURL): Business Model Canvas [Jan-2025 Updated]
US | Consumer Cyclical | Apparel - Retail | NYSE
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Burlington Stores, Inc. (BURL) Bundle
Burlington Stores, Inc. (BURL) has revolutionized the off-price retail landscape with its innovative business model that delivers unparalleled value to budget-conscious shoppers. By masterfully navigating the complex world of discount merchandising, Burlington has created a unique shopping experience that transforms treasure hunting into an art form. Their strategic approach combines an ever-changing inventory, extensive retail network, and seamless omnichannel presence to attract fashion-forward consumers seeking high-quality branded merchandise at remarkably affordable prices. Dive into the intricate Business Model Canvas that powers this retail powerhouse and discover how Burlington has become a go-to destination for savvy shoppers looking to maximize their purchasing power.
Burlington Stores, Inc. (BURL) - Business Model: Key Partnerships
Off-price Merchandise Suppliers and Manufacturers
Burlington maintains strategic partnerships with approximately 1,200 vendors and manufacturers globally. In fiscal year 2022, the company sourced merchandise from over 40 countries.
Supplier Category | Number of Suppliers | Percentage of Total Sourcing |
---|---|---|
Domestic Manufacturers | 680 | 56.7% |
International Manufacturers | 520 | 43.3% |
International and Domestic Apparel Brands
Burlington partners with over 500 recognized apparel brands, including:
- Calvin Klein
- Levi's
- Nike
- Ralph Lauren
- Under Armour
Logistics and Distribution Center Partners
Distribution Center Location | Total Square Footage | Annual Handling Capacity |
---|---|---|
Lancaster, PA | 1,200,000 sq ft | 45 million units |
Phoenix, AZ | 950,000 sq ft | 38 million units |
Shipping and Transportation Companies
Burlington works with major shipping providers:
- UPS: Primary domestic shipping partner
- FedEx: Secondary shipping provider
- DHL: International shipping services
Technology and Digital Platform Vendors
Technology Partner | Service Provided | Contract Value |
---|---|---|
SAP | Enterprise Resource Planning | $12.5 million annually |
Oracle | Cloud Infrastructure | $8.3 million annually |
Burlington Stores, Inc. (BURL) - Business Model: Key Activities
Discount Retail Merchandise Procurement
Burlington Stores procured $5.8 billion in merchandise in fiscal year 2022. The company sources products from approximately 1,000 vendors across multiple countries.
Merchandise Category | Procurement Volume |
---|---|
Apparel | 38% |
Home | 27% |
Footwear | 18% |
Accessories | 17% |
Inventory Management and Curation
Burlington maintains an inventory turnover rate of 4.2x annually. The company operates with a lean inventory management strategy.
- Average store inventory value: $1.2 million
- Inventory refresh rate: Every 6-8 weeks
- Markdown strategy: Approximately 15-20% of merchandise marked down
Store Operations and Customer Service
As of 2023, Burlington operates 866 retail stores across 45 states. Average store size is 38,000 square feet.
Operational Metric | Value |
---|---|
Total Stores | 866 |
Average Store Size | 38,000 sq ft |
Average Employees per Store | 25-30 |
Digital and Physical Retail Channel Management
Digital sales represented 2.5% of total revenue in fiscal year 2022, totaling approximately $185 million.
- Online platform launched in 2019
- Digital sales growth rate: 12% year-over-year
- Mobile app downloads: Over 1.5 million
Supply Chain Optimization
Burlington utilizes 7 distribution centers across the United States, with a total distribution network capacity of 7.5 million square feet.
Supply Chain Metric | Value |
---|---|
Distribution Centers | 7 |
Total Distribution Space | 7.5 million sq ft |
Average Shipping Time | 2-3 business days |
Burlington Stores, Inc. (BURL) - Business Model: Key Resources
Extensive Retail Network
As of January 2024, Burlington operates 904 retail stores across 45 states in the United States. Store footprint includes:
Store Type | Number of Locations |
---|---|
Total Retail Stores | 904 |
Average Store Size | 40,000 square feet |
Brand Recognition
Off-price retail positioning with annual revenue of $9.9 billion in fiscal year 2023.
Inventory Purchasing System
- Centralized purchasing strategy
- Direct relationships with 1,200+ vendors
- Opportunistic buying model
Merchandising Team
Merchandising Metric | Value |
---|---|
Total Merchandising Employees | 27,000 |
Average Buying Experience | 8.5 years |
E-commerce Platform
Digital sales channel with $625 million in online revenue for fiscal year 2023.
Burlington Stores, Inc. (BURL) - Business Model: Value Propositions
High-Quality Branded Merchandise at Discounted Prices
Average discount on branded merchandise: 40-60% off original retail prices
Merchandise Category | Average Discount | Price Range |
---|---|---|
Women's Clothing | 50% | $10 - $50 |
Men's Clothing | 45% | $12 - $55 |
Children's Clothing | 55% | $8 - $40 |
Wide Range of Clothing and Home Goods
Product categories offered:
- Women's Apparel: 35% of inventory
- Men's Apparel: 25% of inventory
- Children's Apparel: 20% of inventory
- Home Goods: 15% of inventory
- Accessories: 5% of inventory
Constantly Changing Inventory with Treasure Hunt Shopping Experience
Inventory turnover metrics:
Metric | Value |
---|---|
Inventory Refresh Rate | Weekly |
New SKUs Introduced | 500-750 per week |
Average Store Inventory | $1.2 million |
Affordable Fashion for Budget-Conscious Consumers
Price point analysis:
- Average Price Points:
- Women's Tops: $12-$25
- Men's Shirts: $15-$30
- Jeans: $20-$40
- Dresses: $25-$50
Convenient Shopping Across Multiple Channels
Sales Channel | Percentage of Sales | Number of Locations |
---|---|---|
Physical Stores | 85% | 785 stores |
Online Retail | 15% | E-commerce platform |
Burlington Stores, Inc. (BURL) - Business Model: Customer Relationships
Self-service Retail Model
Burlington operates 857 stores across 46 states as of fiscal year 2023. Average store size is approximately 38,000 square feet. Customer self-service model allows shoppers to browse merchandise independently with minimal staff intervention.
In-store Personalized Shopping Experience
Personalization Strategy | Implementation Details |
---|---|
Personal Styling Assistance | Available in select stores during peak shopping hours |
Size Recommendation System | In-store sizing guidance for apparel and footwear |
Digital Customer Support
Digital support channels include:
- Online customer service email
- Live chat support
- Social media customer assistance
- Phone support: 1-888-CHECK-BURLINGTON
Loyalty Program with Personalized Recommendations
Burlington does not currently operate a traditional loyalty program. Customer recommendations are generated through browsing history and past purchase data.
Seamless Omnichannel Shopping Experience
Channel | Availability |
---|---|
Physical Stores | 857 locations |
Online Website | Burlington.com |
Mobile App | Available on iOS and Android platforms |
Total digital sales represented 3.5% of total net sales in fiscal year 2023, indicating ongoing omnichannel development.
Burlington Stores, Inc. (BURL) - Business Model: Channels
Physical Retail Stores
As of 2023, Burlington operates 840 off-price retail stores across 45 states in the United States. Total retail square footage: 54.1 million square feet. Average store size: 64,500 square feet.
Metric | Value |
---|---|
Total Stores | 840 |
States Covered | 45 |
Total Retail Square Footage | 54.1 million sq ft |
E-commerce Website
Burlington.com launched in 2021. Online sales represent approximately 3.5% of total company revenue. Annual online revenue: $215 million.
Mobile Shopping Application
Mobile app downloads: 2.3 million as of Q4 2023. App available on iOS and Android platforms.
Platform | App Downloads |
---|---|
iOS | 1.1 million |
Android | 1.2 million |
Social Media Platforms
- Instagram followers: 1.2 million
- Facebook fans: 850,000
- TikTok followers: 350,000
Third-Party Online Marketplaces
Partnerships include Amazon, Walmart Marketplace, and eBay. Online marketplace sales contribute approximately 1.7% of total revenue.
Marketplace | Sales Contribution |
---|---|
Amazon | 0.9% |
Walmart | 0.5% |
eBay | 0.3% |
Burlington Stores, Inc. (BURL) - Business Model: Customer Segments
Budget-conscious Shoppers
Burlington targets price-sensitive consumers with discounted merchandise across multiple categories. In 2023, the average customer saved approximately 60-70% off original retail prices.
Customer Segment Characteristics | Percentage |
---|---|
Annual Household Income Under $50,000 | 42% |
Price Sensitivity Level | High |
Average Transaction Value | $45-$65 |
Fashion-forward Consumers
Burlington attracts trend-conscious customers through designer brand offerings at reduced prices.
- Designer brands available at 40-60% off retail prices
- Quarterly merchandise refresh rate: 70%
- Target age range: 18-45 years
Families Seeking Affordable Clothing
Family-oriented customer segment represents significant market share for Burlington.
Family Segment Metrics | Data Points |
---|---|
Percentage of Family Shoppers | 35% |
Average Family Spend per Visit | $120-$180 |
Children's Clothing Sales Percentage | 25% of Total Revenue |
Young Adults and Millennials
Burlington attracts younger demographics through trendy, affordable merchandise.
- Age range: 18-35 years
- Digital engagement rate: 45%
- Social media influenced purchases: 32%
Value-driven Home Goods Consumers
Burlington offers discounted home decor and household items.
Home Goods Segment | Metrics |
---|---|
Home Goods Revenue | 18% of Total Sales |
Average Discount on Home Items | 55% |
Most Popular Categories | Bedding, Kitchen Accessories |
Burlington Stores, Inc. (BURL) - Business Model: Cost Structure
Merchandise Procurement Expenses
In fiscal year 2023, Burlington's total cost of goods sold (COGS) was $5.85 billion. The company's merchandise procurement strategy focuses on off-price retail, which allows for significant cost savings.
Expense Category | Amount (2023) | Percentage of Revenue |
---|---|---|
Merchandise Procurement Costs | $5.85 billion | 63.4% |
Inventory Purchasing | $4.2 billion | 45.6% |
Store Operating Costs
Burlington incurred total operating expenses of $2.3 billion in fiscal year 2023.
- Rent and occupancy expenses: $612 million
- Utilities and maintenance: $187 million
- Store operations overhead: $495 million
Employee Wages and Benefits
Total labor costs for Burlington in fiscal year 2023 were $1.1 billion.
Labor Cost Component | Amount |
---|---|
Total Employee Wages | $892 million |
Employee Benefits | $208 million |
Marketing and Advertising
Marketing expenses for Burlington in 2023 totaled $86 million.
- Digital marketing: $42 million
- Traditional advertising: $34 million
- Promotional campaigns: $10 million
Technology and Infrastructure Investments
Burlington invested $145 million in technology and infrastructure in fiscal year 2023.
Technology Investment Category | Amount |
---|---|
E-commerce Platform | $62 million |
Supply Chain Technology | $53 million |
Store Technology Infrastructure | $30 million |
Burlington Stores, Inc. (BURL) - Business Model: Revenue Streams
In-store Merchandise Sales
Total retail sales for Burlington Stores in fiscal year 2023: $9.3 billion
Sales Category | Revenue | Percentage of Total Sales |
---|---|---|
Women's Apparel | $2.79 billion | 30% |
Men's Apparel | $1.86 billion | 20% |
Children's Apparel | $2.32 billion | 25% |
Footwear | $930 million | 10% |
Accessories | $744 million | 8% |
Online Retail Sales
Online sales for Burlington in fiscal year 2023: $372 million
- Online sales growth rate: 12.4%
- Percentage of total revenue from digital channels: 4%
Seasonal Clearance Events
Revenue generated from clearance events in 2023: $1.16 billion
Seasonal Event | Average Discount | Revenue Generated |
---|---|---|
End of Season Sale | 40-60% | $465 million |
Holiday Clearance | 50-70% | $695 million |
Home Goods and Accessories
Home goods revenue in fiscal year 2023: $651 million
- Home decor sales growth: 8.7%
- Kitchen and dining accessories revenue: $243 million
- Bedding and bath accessories revenue: $408 million
Diversified Product Category Offerings
Total product category revenue breakdown for 2023
Product Category | Revenue | Percentage of Total Sales |
---|---|---|
Apparel | $6.97 billion | 75% |
Home Goods | $651 million | 7% |
Accessories | $744 million | 8% |
Footwear | $930 million | 10% |
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