Burlington makes bold move to steal Walmart customers | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

If you’ve been shopping at Burlington for a long time, you probably remember the days when the store’s inventory largely revolved around outerwear — hence the old “Burlington Coat Factory” name.

But over the past 15 years or so, Burlington has evolved tremendously. And while you can still visit the store to buy a coat, the company has changed its strategy and expanded its product selection well beyond winter jackets.

Now, when you go to Burlington, you’ll find a wide range of apparel for adults and children alike. You’ll also find things like:

Shoes
Accessories
Home decor items
Beauty products
Seasonal goods

You might even find some toys and gifts for your holiday shopping list.

Expanding its inventory through the years was a strategic move for Burlington, as that opened the door to more customers. And this strategy could serve Burlington well in the coming years as more and more consumers shift toward off-price retail for the massive savings involved.

The off-price retail market is expected to grow to over $747.4 billion by 2033, according to Business Research Insights. That’s good news for Burlington, but it could spell trouble for big-box retailers who stand to lose customers.

Burlington makes bold move to steal Walmart customers.

Image source&colon; Shutterstock

Burlington is poised for growth while Walmart flounders

There’s a reason Walmart has such a loyal customer base. The retail giant is not only known for its low prices, but also houses a wide range of products.

When you go to Walmart, you can buy anything from clothing to fresh groceries to kitchen gadgets. And the winning combination of affordable prices and convenience has kept the company going strong.

Still, Walmart may be showing signs of strain. During its most recent quarter, Walmart beat Wall Street’s sales estimate but fell short on earnings. That marked its first miss on earnings since May of 2022.

Burlington, meanwhile, is expected to show a year-over-year increase in earnings when it reports its most recent quarterly results later this month. Analysts are expecting quarterly earnings of $1.27 per share, marking 5.8% increase year over year, according to Zacks Equity Research.

Revenue, meanwhile, is expected to come in at $2.64 billion, up 7% from the same quarter a year ago.

During a company earnings call earlier this year, CEO Michael O’Sullivan said, “Our focus and our strategy are to find ways to offer great value to customers. If prices rise across retail because of tariffs, then I would expect the price differentiation between us and the rest of retail to grow in our favor.”

Given that Walmart has repeatedly warned that it could raise prices in response to tariffs, that’s a huge differentiator – and a big win on Burlington’s part.

Burlington takes aim at Walmart customers

Burlington and Walmart and clearly two very different breeds. Even with a tremendous amount of inventory expansion, Burlington doesn’t come close to offering the same range of products Walmart does.

You might now be able to buy your favorite jeans, lipstick, and a new purse at Burlington, but you’re not going to find lettuce, cereal, or milk.

Still, at a time when more consumers are looking for value, Burlington has the potential to steal price-conscious customers from Walmart, especially within the fashion space.

It’s not a secret that Walmart has been taking steps to up its fashion game. The company has not only brought in experts like designer Brandon Maxwell to elevate its fashion brands, but it’s also made a huge investment in AI to bring designs to market quickly.

When it comes to attracting fashion-minded consumers, Burlington may have a huge edge due to its discounted selection of popular brands. And now, the company is taking additional steps to enhance the in-store experience by rolling out a fresh new look.

Burlington’s new store layout will feature wider aisles that are more organized and clearly labeled, making it easier for customers to find the products they want. Burlington will also be showcasing new trends in its stores with dedicated displays.

More Retail:

A common complaint among off-price retail fans is that it takes a lot of effort to sort through inventory to find the things you’re looking for.

Even though Burlington offers brand-name products at up to 60% off, for some people, the hassle of wading through disorganized aisles and inventory is enough of a turnoff for them to forgo that savings.

But Burlington is addressing that pain point by making its stores more visually appealing and making products easier to find. And if it continues on that path, it could end up winning over more of Walmart’s customers, especially in the apparel and fashion category.