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Burlington predicts remarkable profit growth and plans for aggressive brick-and-mortar store expansion plans

Wednesday, Jan 17, 2024

Burlington’s competitive off-price model and brick-and-mortar store concepts have proven to be successful throughout the years. Recently, the retail chain has announced plans for a new initiative to focus on marketing, merchandising and store prototypes to enhance overall customer value.

Burlington plans to increase its operating margin to 10% by fiscal 2028. The company also aims for remarkable growth in operating income, reaching $1.6 billion over the next five years – nearly tripling from their projected operating income in fiscal 2023. Burlington anticipates that their new initiative will bring in increased sales and enhanced inventory. 

Burlington has reported a 6% year-over-year increase in comparable store sales in the third quarter of fiscal 2023. The company attributes this growth largely due to its brick-and-mortar stores and back-to-school shopping season. With Burlington’s merchandising strategies and ability to adapt to ever-changing customer needs, this growth has set the stage for massive expansions.  

The company predicts a substantial increase in total sales, targeting $16 billion over the next five years. This prediction is rooted in their aggressive expansion plans – to open 500 new stores in the next five years and expand their customer base and product offerings. Burlington aims to maximize profitability, focusing on smaller, 25,000-square-foot stores in high-traffic strip malls, and strategically relocating or downsizing older stores. 

With Burlington’s off-price model, the retail store chain can easily provide enhanced profitability and predict strong growth insights over the next several years. This store model has continuously proved its strength and success in the market. And there’s no chance of it dying down anytime soon.

Source: Burlington – Yahoo Finance

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