Burlington Coat Factory Warehouse Corporation is a national department store retailer focusing on clothing and shoes, with over 450 stores in 45 states and Puerto Rico.(as of 2010). In 2006, it was acquired by Bain Capital, LLC in a take-private transaction.[1] The company's corporate headquarters are located in Burlington Township, New Jersey.
Burlington Coat Factory Warehouse has two de facto mottos: "not affiliated with Burlington Industries" (thanks to a 1981 trademark-infringement lawsuit settlement) and "We sell more than coats." The company operates about 425 no-frills retail stores offering off-price current, brand-name clothing in about 45 states and Puerto Rico. Although it is one of the nation's largest coat sellers, the stores also sells children's apparel, bath items, furniture, gifts, jewelry, linens, and shoes. Sister chains include a pair of higher-priced Cohoes Fashions shops, about 15 MJM Designer Shoes stores, and a single Super Baby Depot. Founded in 1972, Burlington is owned by affiliates of buyout firm Bain Capital.
Personal income and fashion trends drive demand for clothing. The profitability of individual companies depends heavily on effective merchandising and marketing. Large companies can offer wide selections of clothing and have advantages in purchasing, distribution, and marketing. Small stores can compete by offering unique merchandise, targeting a specific demographic, providing superior customer service, or serving a local market. The industry is labor-intensive: annual revenue per worker is about $145,000. Competition for the clothing store industry includes department stores, discount stores, and Internet and catalog retailers.
Burlington Coat Factory Warehouse Corporation operates as a retailer of branded apparel in the United States. The company offers ladies sportswear, menswear, coats, family footwear and shoes, and home decor and gifts, as well as baby clothing, accessories, furniture, and other merchandise. As of May 1, 2010, it operated 449 stores, including 431 stores under the Burlington Coat Factory Warehouse brand; 2 stores under the Cohoes Fashions brand; 15 stores under the MJM Designer Shoes brand; and 1 store under the Super Baby Depot brand. The company was founded in 1972 and is headquartered in Burlington, New Jersey. Burlington Coat Factory Warehouse Corporation is a subsidiary of Burlington Coat Factory Investments Holdings, Inc.
These hallmarks of Burlington Coat's existence--leased, sparsely decorated stores offering a wide assortment of merchandise--were established policies by 1975, a benchmark year for discount retailers. Prior to 1975, manufacturers were allowed to fix their prices in collusion with the more entrenched, conventional retailers, such as department stores, that sold their merchandise at standard prices. Essentially left on the sidelines, discounters frequently could not stock the same products as their higher-priced competitors, and the merchandise they were able to obtain from manufacturers could not be offered to the public at prices low enough to attract their business. Under such an arrangement, manufacturers and the higher-priced retailers prospered while discount retailers were forced to traffic in inferior quality products. When federal antitrust legislation in 1975 made the agreements between manufacturers and retailers illegal, the door was opened to discount retailers, spurring their ascent to the top of the retail industry. For Burlington Coat, federal intervention arrived just as the company was gaining momentum and provided the defining difference between the two eras in which the father Abe and the son Monroe had hoped to succeed in the retail industry. For the son, it appeared the opportunity for success was now more readily attainable.
Success came, but at a moderate pace, at least in comparison with the rate of growth the company would realize later. By 1983 annual sales had climbed to nearly $300 million, and the company was becoming a giant in the retail industry. It went public that year, with the Milstein family purchasing a majority of Burlington Coat's stock and the company's name changing from Burlington Coat Factory Warehouse to Burlington Coat Factory Warehouse Corporation.
Two Supreme Court rulings in the early 1980s took much of the strength away from the 1975 decision that had essentially put an end to price fixing between manufacturers and traditional retailers. The new decision put the onus of proving vertical price fixing on the accuser, which invariably was the discounter. This greatly diminished the ability of discount retailers to mount a serious threat against the more established partnership between manufacturers and department stores; once a manufacturer terminated a contract with a discounter, the discounter was left with little recourse except to engage in lengthy and costly litigation. Perhaps more disturbing to discount retailers, such as Burlington Coat, was a shift in fashion trends toward high-priced merchandise, a potentially deleterious development that stifled growth throughout much of the decade. During the early 1980s, when consumers developed an affinity for high-priced, designer labels, Burlington Coat recorded modest sales growth, as the once bright prospects for discount retailers noticeably dimmed.
Evolving into a Retail Empire: Late 1980s-Early 1990s
While sales growth was slow, it was better than average during these lean years for discounters nationwide. Sales barely eclipsed $300 million in 1984, then inched upward, climbing to $480 million by 1987. This lull in business, however, was only temporary, for in the next five years Burlington Coat's sales volume would more than double, as the company evolved into a retail empire. Several of the reasons for this exponential growth were attributable to strategic decisions made by Burlington Coat's management, but others were attributable to changing conditions within the retail industry that brought Burlington Coat and other discount retailers to the fore.
Efforts toward diversification were intensified, as the number of linen stores within Burlington Coat stores rapidly increased, growing from 55 in 1989 to more than 140 by 1991. Men's apparel, particularly men's suits, became an important contributor to company sales, and stores began to offer merchandise entirely beyond the scope of many apparel retailers, including such items as children's furniture. Perhaps the most important contributor to Burlington Coat's dramatic growth was a recession in the late 1980s and early 1990s that arrested consumer demand for expensive designer apparel. As the economy suffered and many consumers were left with significantly less discretionary income, discount retailers flourished. Burlington Coat, still continuing to lease its retail space, moved to take advantage of the situation, quickly increasing the number of its stores.
As Burlington Coat's sales figures spiraled upward, the company made two key moves to increase the efficiency of its operation. Burlington Coat improved inventory controls and took advantage of economies of scale by constructing a 438,000-square-foot national distribution center in 1990. Located a mile and a half from the company's original coat factory and store in Burlington, the distribution center was supported by a new computer system Burlington Coat had instituted in 1988 in anticipation of the new distribution center. The computer system enabled Burlington Coat to process as many as 125,000 pieces of merchandise each day at its distribution center and helped position the company to continue to grow during a period that saw many other businesses fail.
Annual sales flirted with the $1 billion mark in 1992, then reached $1.2 billion the following year. There were 185 Burlington Coat stores in 1993, ranging in size from 16,000 square feet to 133,000 square feet, and plans were in place to continue expanding throughout the mid-1990s. Typical Burlington Coat stores offered 10,000 to 20,000 garments from as many as 300 different manufacturers at a 35 percent to 40 percent discount. In 1993, Burlington Coat signed an agreement with Mexican retailer Plaza Coloso S.A. de C.V., an operator of supermarkets and department stores, to open a Burlington Coat store in Juarez, Mexico, the company's first store outside the United States. The following year, after purchasing a ten-store discount chain called Mid-Island, Burlington opened an experimental freestanding men's store that offered men's outerwear, sportswear, and tailored clothing, a service not offered by many discount retailers.
Diversification Paying Off: Mid-1990s and Beyond
As the company entered the mid-1990s expecting to open 25 to 30 stores between 1994 and 1996, an emphasis was placed on its men's apparel segment, particularly men's suits. Men's
Financial Highlights
Fiscal Year End: January
Revenue (2010): 2479.30 M
Revenue Growth (1 yr): (-30.00%)
Employees (2010): 27,620
Employee Growth (1 yr): 3.40%
Statistics:
Public Company
Incorporated: 1972 as Burlington Coat Factory Warehouse
Employees: 23,000
Sales: $2.69 billion (2003)
Stock Exchanges: New York
Ticker Symbol: BCF
NAIC: 452110 Department Stores
Key Dates:
1972: Monroe G. Milstein opens the first Burlington Coat store.
1983: The company goes public and changes its name to Burlington Coat Factory Warehouse Corp.
1990: A 438,000-square-foot national distribution center is established.
1993: Sales surpass $1 billion.
1999: Expansion continues; 27 new stores are opened.
2003: Burlington decides to shutter its Decelle chain; the store count reaches 335 units.
Key People
• President, CEO, and Director: Thomas A. (Tom) Kingsbury
• EVP and CFO: Todd Weyhrich
• Director Vendor Relations: Michael Abruzzi
Address:
1830 Route 130 North
Burlington, New Jersey 08016
U.S.A.
Burlington Coat Factory Warehouse has two de facto mottos: "not affiliated with Burlington Industries" (thanks to a 1981 trademark-infringement lawsuit settlement) and "We sell more than coats." The company operates about 425 no-frills retail stores offering off-price current, brand-name clothing in about 45 states and Puerto Rico. Although it is one of the nation's largest coat sellers, the stores also sells children's apparel, bath items, furniture, gifts, jewelry, linens, and shoes. Sister chains include a pair of higher-priced Cohoes Fashions shops, about 15 MJM Designer Shoes stores, and a single Super Baby Depot. Founded in 1972, Burlington is owned by affiliates of buyout firm Bain Capital.
Personal income and fashion trends drive demand for clothing. The profitability of individual companies depends heavily on effective merchandising and marketing. Large companies can offer wide selections of clothing and have advantages in purchasing, distribution, and marketing. Small stores can compete by offering unique merchandise, targeting a specific demographic, providing superior customer service, or serving a local market. The industry is labor-intensive: annual revenue per worker is about $145,000. Competition for the clothing store industry includes department stores, discount stores, and Internet and catalog retailers.
Burlington Coat Factory Warehouse Corporation operates as a retailer of branded apparel in the United States. The company offers ladies sportswear, menswear, coats, family footwear and shoes, and home decor and gifts, as well as baby clothing, accessories, furniture, and other merchandise. As of May 1, 2010, it operated 449 stores, including 431 stores under the Burlington Coat Factory Warehouse brand; 2 stores under the Cohoes Fashions brand; 15 stores under the MJM Designer Shoes brand; and 1 store under the Super Baby Depot brand. The company was founded in 1972 and is headquartered in Burlington, New Jersey. Burlington Coat Factory Warehouse Corporation is a subsidiary of Burlington Coat Factory Investments Holdings, Inc.
These hallmarks of Burlington Coat's existence--leased, sparsely decorated stores offering a wide assortment of merchandise--were established policies by 1975, a benchmark year for discount retailers. Prior to 1975, manufacturers were allowed to fix their prices in collusion with the more entrenched, conventional retailers, such as department stores, that sold their merchandise at standard prices. Essentially left on the sidelines, discounters frequently could not stock the same products as their higher-priced competitors, and the merchandise they were able to obtain from manufacturers could not be offered to the public at prices low enough to attract their business. Under such an arrangement, manufacturers and the higher-priced retailers prospered while discount retailers were forced to traffic in inferior quality products. When federal antitrust legislation in 1975 made the agreements between manufacturers and retailers illegal, the door was opened to discount retailers, spurring their ascent to the top of the retail industry. For Burlington Coat, federal intervention arrived just as the company was gaining momentum and provided the defining difference between the two eras in which the father Abe and the son Monroe had hoped to succeed in the retail industry. For the son, it appeared the opportunity for success was now more readily attainable.
Success came, but at a moderate pace, at least in comparison with the rate of growth the company would realize later. By 1983 annual sales had climbed to nearly $300 million, and the company was becoming a giant in the retail industry. It went public that year, with the Milstein family purchasing a majority of Burlington Coat's stock and the company's name changing from Burlington Coat Factory Warehouse to Burlington Coat Factory Warehouse Corporation.
Two Supreme Court rulings in the early 1980s took much of the strength away from the 1975 decision that had essentially put an end to price fixing between manufacturers and traditional retailers. The new decision put the onus of proving vertical price fixing on the accuser, which invariably was the discounter. This greatly diminished the ability of discount retailers to mount a serious threat against the more established partnership between manufacturers and department stores; once a manufacturer terminated a contract with a discounter, the discounter was left with little recourse except to engage in lengthy and costly litigation. Perhaps more disturbing to discount retailers, such as Burlington Coat, was a shift in fashion trends toward high-priced merchandise, a potentially deleterious development that stifled growth throughout much of the decade. During the early 1980s, when consumers developed an affinity for high-priced, designer labels, Burlington Coat recorded modest sales growth, as the once bright prospects for discount retailers noticeably dimmed.
Evolving into a Retail Empire: Late 1980s-Early 1990s
While sales growth was slow, it was better than average during these lean years for discounters nationwide. Sales barely eclipsed $300 million in 1984, then inched upward, climbing to $480 million by 1987. This lull in business, however, was only temporary, for in the next five years Burlington Coat's sales volume would more than double, as the company evolved into a retail empire. Several of the reasons for this exponential growth were attributable to strategic decisions made by Burlington Coat's management, but others were attributable to changing conditions within the retail industry that brought Burlington Coat and other discount retailers to the fore.
Efforts toward diversification were intensified, as the number of linen stores within Burlington Coat stores rapidly increased, growing from 55 in 1989 to more than 140 by 1991. Men's apparel, particularly men's suits, became an important contributor to company sales, and stores began to offer merchandise entirely beyond the scope of many apparel retailers, including such items as children's furniture. Perhaps the most important contributor to Burlington Coat's dramatic growth was a recession in the late 1980s and early 1990s that arrested consumer demand for expensive designer apparel. As the economy suffered and many consumers were left with significantly less discretionary income, discount retailers flourished. Burlington Coat, still continuing to lease its retail space, moved to take advantage of the situation, quickly increasing the number of its stores.
As Burlington Coat's sales figures spiraled upward, the company made two key moves to increase the efficiency of its operation. Burlington Coat improved inventory controls and took advantage of economies of scale by constructing a 438,000-square-foot national distribution center in 1990. Located a mile and a half from the company's original coat factory and store in Burlington, the distribution center was supported by a new computer system Burlington Coat had instituted in 1988 in anticipation of the new distribution center. The computer system enabled Burlington Coat to process as many as 125,000 pieces of merchandise each day at its distribution center and helped position the company to continue to grow during a period that saw many other businesses fail.
Annual sales flirted with the $1 billion mark in 1992, then reached $1.2 billion the following year. There were 185 Burlington Coat stores in 1993, ranging in size from 16,000 square feet to 133,000 square feet, and plans were in place to continue expanding throughout the mid-1990s. Typical Burlington Coat stores offered 10,000 to 20,000 garments from as many as 300 different manufacturers at a 35 percent to 40 percent discount. In 1993, Burlington Coat signed an agreement with Mexican retailer Plaza Coloso S.A. de C.V., an operator of supermarkets and department stores, to open a Burlington Coat store in Juarez, Mexico, the company's first store outside the United States. The following year, after purchasing a ten-store discount chain called Mid-Island, Burlington opened an experimental freestanding men's store that offered men's outerwear, sportswear, and tailored clothing, a service not offered by many discount retailers.
Diversification Paying Off: Mid-1990s and Beyond
As the company entered the mid-1990s expecting to open 25 to 30 stores between 1994 and 1996, an emphasis was placed on its men's apparel segment, particularly men's suits. Men's
Financial Highlights
Fiscal Year End: January
Revenue (2010): 2479.30 M
Revenue Growth (1 yr): (-30.00%)
Employees (2010): 27,620
Employee Growth (1 yr): 3.40%
Statistics:
Public Company
Incorporated: 1972 as Burlington Coat Factory Warehouse
Employees: 23,000
Sales: $2.69 billion (2003)
Stock Exchanges: New York
Ticker Symbol: BCF
NAIC: 452110 Department Stores
Key Dates:
1972: Monroe G. Milstein opens the first Burlington Coat store.
1983: The company goes public and changes its name to Burlington Coat Factory Warehouse Corp.
1990: A 438,000-square-foot national distribution center is established.
1993: Sales surpass $1 billion.
1999: Expansion continues; 27 new stores are opened.
2003: Burlington decides to shutter its Decelle chain; the store count reaches 335 units.
Key People
• President, CEO, and Director: Thomas A. (Tom) Kingsbury
• EVP and CFO: Todd Weyhrich
• Director Vendor Relations: Michael Abruzzi
Address:
1830 Route 130 North
Burlington, New Jersey 08016
U.S.A.