Burlington Coat Factory SWOT and PESTLE Analysis

Strength

1. Strong portfolio of quality, on-trend brands: Burlington Coat Factory is considered as one of the leading and nationally recognized off-price retailers of high-quality branded apparel. The company carries an extensive selection of on-trend, quality brands available at great values. As for the fiscal year of 2019, Burlington carried a large and diversified portfolio of approximately 5,200 brands and the company expects the number to rise in the following years. The portfolio included mostly premium and moderate national brands, with up to 60% discounting with “invisible” pricing, that is, no overt in-store pricing signs or online/printed prices. Moreover, with the wide product breadth including family apparel and footwear, baby products, accessories, and home, the company maintained more fashion forward, broad and shallow product assortments.

2. Proven long-term track record of consistent growth and performance: Being a widely renowned leader in the off-price retailer category, Burlington Coat Factory has projected significant growth over the last few years. In the period between the fiscal years of 2013 and 2019, the company projected a CAGR of approximately 8.6% with net sales and EBITDA margins of 4,428 million dollars, 8.7% and 7,261 million dollars, 12.2% respectively, in 2013 and in 2019. Apart from this, since the year of 2008, Burlington has registered a 198% improvement in the parameter of comparable store inventory turnover. Moreover, if considered from the fiscal year of 2010, the company has recorded a CAGR of 7.9% and 12.4% in net sales and adjusted EBITDA respectively.

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Weakness

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Opportunity

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Threats

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Reducing carbon footprints by energy efficiency efforts in corporate locations: With surging middle class populace, the greatest challenge of over-consumption of resources arises. To deal with this issue as well as corporate growth, Burlington emphasizes on the reduction of its carbon footprints by enhancing the energy efficiency efforts in all corporate locations including stores and distribution centres. As a result of these efforts, the company was able to reduce its total energy usage by 10% per square foot with approximately 545,000 MWh in 2017 as compared to 2016. The company was able to accomplish these results and better manage its energy usage and financial savings because of multiple energy efficiency projects including LED light fixture installations and real-time monitoring of store Energy Management Systems. Moreover, Burlington’s sustainability efforts also included renewable sourcing plans with the expectation of offsetting the energy consumption by over 50% like the installation of nearly 12,000 solar panels, which generated approximately 4,900 MWh of power annually.

2. Promoting circular economy through efficient management of waste footprints: To avoid wastage as well as promote efficient utilisation of resources, all responsible corporations nowadays are becoming conscious of their business operations’ waste footprints. Various initiatives are being taken for the proper management and mitigation of those impacts. At Burlington’s, a sustainable framework is being maintained for the provision of waste disposal and recycling maximization to the employees. Furthermore, the framework has been created with the aim of increasing efficiencies, reducing or diverting the landfill wastes, and also ensuring compliance with the local and state recycling regulations. As a result of the concerted efforts put forward by the company, approximately 40,940 tons of wastes were diverted from landfills, and nearly 208 tons of hazardous wastes were properly disposed in fiscal 2018.

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