One discount retailer says it plans to open twice as many stores, due to industry disruption and a change in its strategy.
Burlington Stores, which previously operated as Burlington Coat Factory, has a long-term plan of increasing its total store count to 2,000 locations, up from 1,000, Chain Store Age reported. The company currently operates 761 stores, and intends to open 100 new stores this fiscal year.
The company is able to predict such an expansion, in part, because it plans for those stores to have a significantly smaller footprint than the large stores that many shoppers associate with the brand.
“This new target takes account of the significant market share opportunity that we see ahead of us, and of the improvements we are making in our business with Burlington 2.0, in particular the significant reduction in inventory levels and the smaller store footprint that this enables,” Michael O’Sullivan, the company’s CEO, said in a statement to the publication.
In the quarter ending Jan. 30, Burlington reported $155.9 million in net income, down from $206.3 million during the same period last year. Still, adjusted per-share earnings were $2.44, beating analysts’ expectations of $2.12.
[CSA] — Georgia Kromrei