Burlington Stores, Inc. (BURL) Business Model Canvas

Burlington Stores, Inc. (BURL): Business Model Canvas [Jan-2025 Updated]

US | Consumer Cyclical | Apparel - Retail | NYSE
Burlington Stores, Inc. (BURL) Business Model Canvas
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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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