Burlington Coat Factory: From Humble Beginnings

Burlington, formerly known as Burlington Coat Factory, is an American national off-price department store retailer. The company was started in 1972 by Monroe Milstein, who acquired a former factory outlet in Burlington, New Jersey, with the help of his wife, Henrietta Milstein, who contributed most of the $75,000 down payment from her savings as a librarian. Initially, the Milsteins sold coats and jackets in wholesale, but they gradually expanded their product line to include clothing items, accessories, linens, gift items, baby products, and shoes.

Burlington Coat Factory's beginnings as a family business

Burlington, formerly known as Burlington Coat Factory, began as a family-run business in 1972. The company was started by Monroe Milstein, who was convinced by his wife, Henrietta Milstein, to purchase a former factory outlet in Burlington, New Jersey, for $675,050. Henrietta saved most of the $75,000 down payment from her job as a librarian.

Monroe and his father, Abe, had been running a successful wholesale and retail outerwear business together since 1946. Initially, the Milsteins sold coats and jackets wholesale, but they soon began adding other clothing items and accessories to reduce their dependence on the seasonal coat business. Over time, they expanded their product offerings to include linens, gift items, baby products, and shoes.

The company's growth can be attributed to strategic decisions made by the Milstein family, such as leasing existing retail spaces instead of constructing new ones, offering a wide assortment of merchandise, and taking advantage of favourable economic conditions. By 1983, annual sales had climbed to nearly $300 million, and the company went public, changing its name to Burlington Coat Factory Warehouse Corporation. The Milstein family maintained control of the company, purchasing a majority of the stock.

The company continued to expand, opening its second location in 1975 in Copiague on Long Island. Lazer, Monroe and Henrietta's son, was asked to return from Israel to act as the legal owner of the new store, with the condition that the store would be closed on Saturdays to observe the Sabbath. This condition allowed the business to avoid legal action, as, at the time, businesses could be sued for opening on Sundays, unless they observed a different Sabbath.

The role of Henrietta Milstein

Henrietta's financial contribution and belief in the venture were instrumental in the company's inception. Her initiative set in motion a series of events that transformed Burlington Coat Factory into a prominent retail business. This initial investment also highlights her confidence in the potential of the enterprise.

The Milsteins initially sold coats and jackets in wholesale, but Henrietta's influence extended beyond the company's early days. Recognising the seasonal nature of the coat business, she encouraged the company to diversify its product range. This strategic decision was crucial, as it reduced the company's dependence on coat sales and set the stage for their expansion into other product categories.

Under Henrietta's guidance, Burlington Coat Factory gradually expanded its offerings to include clothing items, accessories, linens, gift items, baby products, and shoes. This diversification not only mitigated the risks associated with seasonal fluctuations but also broadened their customer base and increased their revenue streams.

Henrietta Milstein, alongside her husband Monroe, steered the company's growth and evolution. Their joint leadership laid the foundation for Burlington Coat Factory's success, and by 1983, the company had become a formidable player in the retail industry, with annual sales nearing $300 million. That same year, the company went public, reflecting its solid financial standing and growth potential.

Expansion and diversification of product lines

Burlington Coat Factory, now known simply as Burlington, has expanded and diversified its product lines significantly since its founding in 1972. Initially, the company focused on selling coats and jackets, but it soon began adding other clothing items and accessories to reduce its dependence on the seasonal coat business. This expansion into new product categories was a key strategy for the company, helping it to become one of the most successful discount department stores in the United States.

By the mid-1990s, men's apparel, including suits, accounted for 35% of Burlington Coat's total sales, almost matching the sales from outerwear. The company also started selling infant and children's clothing, furniture, and toys, as well as linens and home décor. This diversification effort was a direct response to changing fashion trends, with consumers moving towards high-priced, designer labels in the early 1980s, which slowed sales growth for discount retailers.

In 1993, Burlington Coat signed an agreement to open a store in Juarez, Mexico, marking its first store outside the United States. The company continued its expansion by opening 27 new stores in 1999 and launching its e-commerce website the same year. By 2003, Burlington Coat operated 335 stores, including its namesake coat stores, Cohoes Fashions, Luxury Linens, Baby Depot, and MJM Designer Shoe stores.

As of 2013, the company operated 503 stores under various banners, including Burlington Coat Factory, Cohoes Fashions, Baby Depot, and MJM Designer Shoes. The product portfolio included discounted brand-name shoes and clothing, baby furniture and accessories, linens, home décor, and gifts.

In 2015, Burlington Stores developed a data-driven real estate location strategy, identifying potential locations to support up to 1000 stores over time. This strategy paid off, as evidenced by the opening of its 1000th store in Astoria, a significant milestone in the company's expansion journey. As of 2024, Burlington operates more than 1000 stores in 40 states and Puerto Rico, offering a wide range of products beyond its initial coat and jacket offerings.

The company's commitment to social causes

Burlington, formerly known as Burlington Coat Factory, has been involved in several charitable partnerships over the years. Here is a detailed look at the company's commitment to social causes:

Leukemia and Lymphoma Society's Light the Night Campaign

Burlington has been partnering with the Leukemia and Lymphoma Society since 2002. They collect donations for the society at their store checkouts and also hold an annual fundraiser from July to October. In 2013, they raised over $3 million, bringing their total contribution to more than $19 million.

Warm Coats and Warm Hearts Drive

In 2006, Burlington launched a drive to collect coat donations for those in need. They partnered with ABC's Good Morning America and the national nonprofit Fashion Delivers. Burlington stores served as drop-off spots, and local charities distributed the coats within their communities. Over 1.2 million coats have been collected and distributed since the program's inception.

WomenHeart: The National Coalition for Women with Heart Disease

Since 2012, Burlington has partnered with WomenHeart to promote women's heart health education during National Heart Health Month. As part of this partnership, they hold an annual Red Dress Event, where $1 from every red dress sold in stores is donated to WomenHeart. In 2014, they launched the "Heart of Style Tour," where a bus travelled to various store locations with heart health professionals on board, offering blood pressure and BMI tests and education about women's heart disease.

Other Initiatives

Burlington has also been committed to other social causes. They received a $40 million incentive from the New Jersey Economic Development Authority in 2012 to build a new headquarters in Florence, keeping the company from moving out of the state. Additionally, they joined the Fortune 500 for the first time in 2016, demonstrating their success and impact in the business world.

Animal welfare controversies

In 1998, Burlington Coat Factory faced scrutiny from animal welfare organisations and activists. The Humane Society of the United States informed the company that it was selling parkas trimmed with real dog fur from China, advertised as "faux fur". This incident sparked accusations of false advertising and animal cruelty, leading to negative publicity and backlash from animal activists. In response, Burlington Coat Factory promptly recalled the parkas and returned them to the vendor to control the situation.

In addition to the dog fur controversy, coats sold by Burlington Coat Factory were also found to contain the hair of raccoon dogs. Undercover investigations by animal welfare organisations revealed instances of mislabelling, with real fur products being marketed as "faux fur". These incidents have raised concerns about the company's sourcing practices and labelling accuracy.

To address the concerns, Burlington Coat Factory agreed to pull the false advertisements and correct their product labelling. The company's response demonstrates its commitment to rectifying the issues and preventing similar incidents in the future.

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