Burlington Stores is expected to exit from the ecommerce business. The company had previously reported its fourth-quarterly earnings and sales that beat all the Street estimates. The popular off-price retailer’s report came down like a bombshell on its quarterly call with analysts. Executives of Burlington Stores stated that they will be ceasing their ecommerce operations, and focus solely on brick and mortar. The online sales account to just 0.5 percent of the total sales of the company and they operate almost 720 stores in the 45 states of the US and in Puerto Rico.
Michael O’Sullivan, CEO of Burlington Stores, while addressing the analysts stated that their business is just a moderate off-price business and due to the nature of the operations and the average price point, they are forced to confine their operation to brick and mortar stores. The economic advantage is very minimal for ecommerce and to improve the profitable sales, the company will now focus all its energy and resources into brick and mortar stores. The Burlington Stores is expected to start operating in 80 new locations and they will also be moving/relocating almost 26 stores. In 2020, the new stores’ average fiscal will be 39,400 sq. and for the first time, Burlington Stores’ average will be less than 40,000 square feet.