Burlington Coat Factory: Its Roots And History

Burlington, formerly known as Burlington Coat Factory, is an American national off-price department store retailer. The company was founded in 1972 by Henrietta and Monroe Milstein, who had been running a successful wholesale and retail outerwear business together since 1946. The first store was opened in Burlington, New Jersey, and the company has since expanded to become the third-largest off-price retailer in the US, with over 1,000 stores across the country.

Burlington Coat Factory was founded in 1972 by the Milstein family

Burlington Coat Factory, now known as Burlington Stores, was founded in 1972 by the Milstein family. The first store was opened in Burlington, New Jersey, by Monroe Milstein and his wife, Henrietta. The couple purchased a former factory outlet in Burlington for $675,050, using money that Henrietta had saved from her job as a librarian—she provided most of the $75,000 down payment.

Monroe's father, Abe, had been running a successful wholesale and retail outerwear business with his son since 1946. However, the Burlington Coat Factory store that opened in 1972 specialised in selling winter overcoats. The Milsteins soon realised that their sales were too dependent on the weather, with sales peaking in winter and dropping in the summer months. To mitigate this, they began selling other clothing items and accessories, eventually expanding into linens, gift items, baby products, and shoes.

By 1983, the company, now called Burlington Coat Factory Warehouse Corporation, had 31 stores and went public. The Milstein family purchased a majority of the company's stock. Over the next few decades, the company continued to grow and expand, with Monroe and Henrietta at the helm, later joined by their sons. By the mid-1990s, the company was still essentially family-owned and operated. In 2006, the company was purchased by Bain Capital Partners for $2.06 billion.

The company's first store was in Burlington, New Jersey.

The Milsteins initially sold coats and jackets wholesale, but soon began adding other clothing items and accessories to reduce their dependence on the seasonal coat business. This proved to be a successful strategy, and by 1982, the company's annual sales exceeded $130 million. The company expanded rapidly, opening 29 additional stores and introducing new merchandise categories such as ladies' sportswear, men's activewear, tailored clothing, and children's apparel.

The Burlington Coat Factory's initial success can be attributed to its strategy of offering a wide range of first-quality, branded outerwear for the family at prices significantly below those of department stores. This value-driven approach resonated with customers, and the company quickly became a giant in the retail industry. By the time of its IPO in 1983, the company operated 31 stores, and its annual sales had climbed to nearly $300 million.

The Burlington Coat Factory's first store in Burlington, New Jersey, set the foundation for the company's growth and success. It established the company's reputation for delivering amazing value to customers, a principle that has guided its expansion into a nationally recognized off-price retailer with over 1,000 stores nationwide.

The company was purchased by Bain Capital in 2006

Burlington, formerly known as Burlington Coat Factory, is an American national off-price department store retailer. In 2006, the company was purchased by Bain Capital Partners for $2.06 billion. The company, which started as a family-run business in 1972, had grown to operate 368 stores and generate $3.4 billion in annual sales by the time of the acquisition.

The history of Burlington Coat Factory dates back to 1924 when it was founded as a wholesaler of ladies' coats and junior suits. However, it was not until 1972 that the company ventured into retail, opening its first store in Burlington, New Jersey. Over the years, the company expanded its product offerings beyond coats and established a strong presence in the off-price retail market. By 2005, the company had 362 stores in 42 states and had generated $3.2 billion in annual sales.

The acquisition by Bain Capital marked a significant milestone in the company's history. The Milstein family, who had been running the business since its inception, made substantial gains from the sale. Monroe Milstein, one of the founders, stepped away from the company, while two of his sons, Stephen and Andrew, remained briefly. Mark Nesci, the former executive vice president and chief operating officer, was appointed as the acting CEO.

Following the acquisition, the company formed a holding company called Burlington Coat Factory Holdings Inc. to serve as the ultimate parent of the chain. This move reflected the company's intention to maintain its focus on the Burlington Coat Factory brand. The acquisition also led to a change in leadership, with Thomas Kingsbury hired as the new President and Chief Executive Officer.

The new ownership brought about strategic shifts within the company. Burlington solidified its foundation as a multi-category off-price retailer, aiming to reduce comparable store inventories, accelerate new store openings, increase its merchandising headcount, and develop key categories such as home and ladies' apparel. The company's rebranding from Burlington Coat Factory to Burlington Stores in subsequent years further emphasised its evolution beyond solely selling coats.

The company has been accused of mislabelling real fur products as faux fur

Burlington, formerly known as Burlington Coat Factory, is an American national off-price department store retailer. The company was founded in 1972 by Henrietta and Monroe Milstein, who purchased a former factory outlet in Burlington, New Jersey, for $675,050. The Milsteins initially sold coats and jackets in wholesale but soon began adding other clothing items and accessories to reduce their dependence on the seasonal coat business. Over time, they expanded their product range to include linens, gift items, baby products, and shoes.

In 1998, Burlington Coat Factory faced scrutiny when the Humane Society of the United States informed the company that it was selling men's parkas trimmed with fur from slaughtered dogs. The company recalled the coats and pulled hundreds of them from its stores. An investigation by the Humane Society revealed that the fur was sourced from China, where animals, including dogs and cats, were treated cruelly and slaughtered using barbaric methods.

Following this incident, Burlington Coat Factory has been under scrutiny by animal welfare organizations, including the Humane Society of the United States and PETA, for allegedly mislabelling real fur products as "faux fur." Undercover investigations revealed that some "faux fur" products were actually made from the pelts of animals killed in China, and coats sold by the company were found to contain hair from raccoon dogs. In response to these allegations, Burlington Coat Factory agreed to pull the false advertisements and remove all fur products from its shelves. The company also committed to no longer selling fur in any of its stores across the country.

The mislabelling of real fur as faux fur is a significant issue as it misleads consumers who may have ethical concerns about purchasing animal products. It also highlights the cruel practices involved in the fur trade, where animals are subjected to inhumane treatment and killing methods. The incident with Burlington Coat Factory is not an isolated case, as other retailers have also been accused of similar mislabelling practices. This has led to increased scrutiny of the fur industry and a growing movement towards fur-free fashion.

The company has expanded its product line beyond coats

Burlington, formerly known as Burlington Coat Factory, is an American national off-price department store retailer. The company has expanded its product line beyond coats to include clothing items and accessories, linens, gift items, baby products, and shoes.

In 1972, when the company opened its first store, it initially sold coats and jackets in wholesale. However, to reduce dependence on the seasonal coat business, the company began gradually adding other product lines. By 1998, slightly more than 20% of the company's revenues came from coat sales, indicating that their expansion into other product categories had been successful.

As of 2013, the company operated 503 stores under various names, including Burlington Coat Factory, Cohoes Fashions, Baby Depot, and MJM Designer Shoes. The company's product line has continued to evolve, and they now offer a wide range of discounted brand-name products, including shoes, clothing, baby furniture, and accessories.

The company's expansion beyond coats has been a key strategy in reducing their dependence on seasonal coat sales and diversifying their revenue streams. This diversification has contributed to the company's overall success and growth, allowing them to expand their store count and enter new markets.

Today, Burlington continues to be a prominent retailer, offering a diverse range of products to its customers across the United States.

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