Excitement is in the air as Burlington Coat Factory has announced to open a store at Capitola Mall on Thursday. This strategic move has caught the attention of consumers and investors in the area.
Shoppers in the area can purchase a wide range of footwear, accessories, home essentials, and clothing at affordable prices.
This major retail chain has over 450 stores in approximately 45 states. The new store is soon to open the new store in the Sears wing vacated by Halloween Spirit. The 6000 square foot space is expected to employ 13 people.
It will house designer women’s and men’s coats. Unlike its more prominent outlets, this store will not carry a children’s coats and shoes section.
“We’re thrilled to bring Burlington Coat Factory to Capitola Mall,” said Linda Henderson, the store manager. According to her, Burlington aims to provide an unmatched shopping experience at unbeatable prices.
Burlington Coat Factory is a favorite destination for fashion-savvy consumers who want to enjoy deals on the latest trends. The new location at Capitola Mall is expected to offer the same service. With the new store opening, local Burlington fans will not have to drive to Eastridge or Gilroy in San Jose.
Even though the Capitola store is a temporary location, which will close by the end of February. Lisa Porter, business development manager of the mall, says this pop-up store is a win-win. She said, “The retailer tests the market. We get to lease space.”
Macerich, the mall, satisfied all the requirements that Burlington was looking for at the Capitola location. These pop-up stores allow the brand to share their story and cost-effectively demo their products.
Another brand, Toys R Us, uses a similar approach. It opened a store temporarily in October, which will stay open through the first week of January. The largest toy retailer has a superstore location within two miles.
In a statement, Porter said it is difficult to foresee the impact of opening a smaller store nearby. It might attract shoppers or cannibalize sales. However, she was happy about adding a new store, given that it diversifies their merchandising mix.
Thomas Kingsbury, Burlington’s CEO, has made impressive efforts to rebrand and become a leading player in the booming off-price retail channel. The decision to shed the ‘Coat Factory’ from the name was to reflect the diverse range of offerings at the store.
He said, “While coats will always be an integral part of our store, we have become a destination for fashionable clothing, footwear, accessories, and home essentials. The new name, Burlington, better reflects our identity.“
He also realized that consumers want to shop through online mediums and in-store. Wall Street analysts and investors noticed these rebranding efforts. Under Kingsbury’s watch, Burlington’s stock price experienced a significant boost, with shares hitting record highs. The share price was $30 in 2014. To date, the stock price is nearly $140 to $150.
Kingsbury told the summit attendees about a strategic change incorporated while marketing. He said, “When I first started, I had to define how we will go market. I established that we will buy a third of our goods before and two-thirds after the season begins.”
Burlington also eliminated POS markdowns and Black Friday sales. The company could easily leverage the everyday-low-price model by eliminating promotions and altering the name. They wanted the customers to shop without worrying that the product would go on sale in a week or so.
Moreover, Burlington wants its customers to have a unique experience at the store. For this reason, the company wanted to adopt a scarcity model. Along with rebranding internal affairs, the stores were also redesigned. Brighter LED lighting organized H racks for clothes, and color-coordinated product presentation was part of restructuring the store.
The scarcity model encourages the customer to buy the product because it might not be available the following week. Burlington also offers a variety of perks to its partners. Adidas and Under Armor partner with the store to add an athletic line. Moreover, Nine West and Steve Madden provide fashionable footwear.
Burlington has reliable and straightforward operations, so their partners feel secure. Brands will not experience end-of-season returns, will not have to use their marketing funds, and will not experience product cancellations.
According to market watchers, with a market share of just 11.4%, Burlington has a significant upside in the long run. Treasure hunt shopping experience and fast inventory flows at Burlington stores enhance their off-price model.
Even though the CEO recognizes the need for off-price and online models, their e-commerce is less than 1% of the business. They intend to be the best brick-and-mortar retailer. With this mission, Burlington has increased their in-store offerings and is consistently finding new suitable locations for new stores.
The company wants to build a solid foundation, ensuring it remains a go-to destination for affordable fashion and home goods. In addition, they want to instill a sustainable pricing model that prioritizes customer satisfaction.