Burlington Stores SWOT Analysis Analyzes, Burlington Stores, Inc. operates as a retailer of branded apparel products in the United States. The company offers fashion-focused merchandise, including women’s ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products. As of August 26, 2023, the company operated 792 stores in 45 states and Puerto Rico primarily under the Burlington Stores name. The company was founded in 1972 and is headquartered in Burlington, New Jersey.
Did You Know? Burlington Stores is listed on the New York Stock Exchange under share code ticker: BURL
Burlington Stores offers an assortment of products from over 5,000 brands through an everyday low price approach that undercuts conventional retailers’ regular prices by up to 60%. The company focuses on providing a treasure hunt experience, with a quickly changing array of merchandise in a relatively low-frills shopping environment.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Burlington Stores.
Burlington Stores At A Glance – Burlington Stores SWOT Analysis
Company: Burlington Stores, Inc
Founders: Monroe Milstein
Year of establishment: 1972, Burlington Township, New Jersey, United States
CEO: Michael O’Sullivan
Headquarters: Burlington, New Jersey, United States
Employees (Dec 2020): 52,000
Ticker Symbol: BURL
Annual Revenue (Dec 2020): US$5.8 Billion
Profit net income (Dec 2020): US$2.33 Billion
Products & Services: Accessories | Handbags | Items for the home | Pet supplies
Company Website: www.burlingtoninvestors.com
Top Burlington Stores Competitors
Competitors: J.C. Penney | Walmart | Dillard’s | Costco | Dollar General | Stein Mart | Big Lots | Kohl’s
Burlington Stores SWOT Analysis – SWOT Analysis Of Burlington Stores
SWOT Analysis Of Burlington Stores analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Burlington Stores SWOT Analysis, it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Burlington Stores SWOT Analysis. Below Is The Detailed SWOT Analysis Of Burlington Stores.
Burlington Stores Strengths – Burlington Stores SWOT Analysis
- Outstanding performance in new Markets Superb Performance in New Markets Burlington Stores has built expertise in establishing new markets and achieving success of these markets. The expansion has allowed the business to develop a new revenue streams and diversify economic risks within the markets that it operates in.
- A high level of satisfaction with customers The company through its dedicated department for managing customer relations is able to reach an extremely high level of satisfaction with its current customers as well as high brand loyalty among prospective customers.
- Highly skilled employees through effective educational and learning programmes. Burlington Stores is investing huge resources into developing and training its employees, resulting in a workforce who is not only competent but also driven to do better.
- Solid Brand Portfolio Through the years, Burlington Stores has invested in creating a brand portfolio that is strong. This SWOT assessment that is carried out by Burlington Stores just underlines this fact. The brand portfolio could be extremely beneficial when a company is looking to expand into new categories of products.
- High Returns on Capital Investment Good Returns on Capital Expenditure Burlington Stores is relatively successful in the execution of new initiatives and has generated decent returns on capital expenditures through the creation of additional revenue sources.
- A strong dealer community has created a culture of dealers and distributors where dealers do not just promote the products of the company, but also invest in educating sales staff to show the client how to get the most value from the product.
- Proven track record of creating new products , product innovations and products.
- Solid Free Cash Flow Burlington Stores has strong free cash flows that allow for resources for the business to grow into new ventures.
Burlington Stores Weaknesses – Burlington Stores SWOT Analysis
- It is time to invest more in the latest technologies. Due to the magnitude of expansion and the different regions the company plans to enter, Burlington Stores needs to invest more into technology to improve the processes across all departments. At present, the investment in technology is not on in line with the plans of the company.
- The ratio of profitability and Net Contribution percentage from Burlington Stores are below the industry standard.
- Days inventory is higher compared to other retailers, requiring the company increase its capital investment into the channel. This could affect the expansion of Burlington Stores
- The financial planning process isn’t done effectively and efficiently. The current ratio of assets and ratio of liquid assets suggest that the company could use the cash more effectively than it does in the present.
- The structure of the organization is suitable for the current business model, thereby limiting expansion into other product categories.
- The way in which the product was promoted left many things to be wanted. While the product is successful in terms of sales, its positioning and distinctive selling point isn’t well identified, which can result in being targeted by competitors.
- The company isn’t in a position to meet the challenges presented by new competitors in the sector and has been losing market share in small-scale categories. Burlington Stores has to build an internal feedback system that is directly sourced from the sales staff on the ground to overcome these issues.
Burlington Stores Opportunities – Burlington Stores SWOT Analysis
- The latest technology offers an opportunity for Burlington Stores to practices differentiated pricing strategies in the new market. This will allow the company to retain its loyal customers by providing excellent service as well as attract new customers by offering other attractive propositions.
- The company’s core competencies could be an advantage in different product fields. An example of this could be the case of GE healthcare research has helped in the development of better oil drilling equipment.
- The development in the market could result in a diminution of the advantage of competitors and allow Burlington Stores to increase its effectiveness in comparison to its competitors.
- The latest trends in consumer’s behavior could create a new markets for Burlington Stores . It is a wonderful opportunity for the business to create new income streams and expand into different product lines as well.
- The new tax policy could dramatically alter the way of conducting business. It could also provide new opportunities for established companies such as Burlington Stores to increase its profits.
- A steady flow of cash provides opportunities to invest in related product segments. With more money in the bank the business is able to invest in the latest technologies, as well as new product categories. This could open up a door of opportunities to Burlington Stores in other product segments.
- Lower inflation rate – The lower inflation rate provides more stability to the market, allow credit with a lower interest rate to patrons from Burlington Stores.
- The economic recovery and the increase in customers’ spending, following many years of recession and a slow growth within the business, presents the perfect opportunity for Burlington Stores to capture new customers and expand their market share.
Burlington Stores Threats – Burlington Stores SWOT Analysis
- The demand for high-profitable products is seasonal and any unpredictability during peak seasons could affect the financial performance of the business in the short to medium-term.
- The rising pay rate, particularly movements such as $15 per hour and rising prices in China could put severe stress on the profitability of Burlington Stores
- The laws governing liability in different countries differ as well. Burlington Stores may be exposed to liability claims arising from a modifications to policies in these markets.
- Because the company is operating across multiple countries, it is subject to fluctuations in currency, especially due to the unstable political climate in a many markets around the globe.
- Local distributors’ growing power can pose a threat to certain markets since the competitors are paying higher prices to local distributors.
- Innovative technologies developed by a market disruptor or competitor could pose a significant risk to the industry in the near to medium-term future.
- The growing trend towards isolationism in the American economy could trigger similar reactions from other governments which could negatively affect international sales.
- Stable profit has added more players in the market over the past two years, which has put pressure on profitability, not just but also overall sales.
This is the SWOT report that Burlington Stores has done. Please let us know if you have additional suggestions to add.
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