Retail Business Analysis Burlington Coat Factory Corporate Essay

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Retail Business Analysis

Burlington Coat Factory

Corporate History and Summary

Originally founded in 1972 by Monroe and Henrietta Milstein with only one coat/outerwear factory and store, Burlington Coat Factory Warehouse Corporation has grown into an extremely successful discount retail outlet chain. Although it began as a family-owned and -operated business, the company went public for a time, with the Milsteins retaining a majority of share holdings (BCF, 2011). Eventually, the company was purchased in 2006 by Bain Capital Partners, LLC, and was made a private holding. Currently, Burlington Coat has more than 460 stores in 44 states nationally, as well as satellite stores in Puerto Rico and joint ventures in Mexico; employs more than 28,000 workers; and generated $3.67 billion in sales as of the closing of the final fiscal quarter ending in January 29, 2010 (BCF, 2011).

Burlington Coat is known in the retail industry as a major player, offering wide selections of well-recognized, quality brands at low prices. The company's motto is, "We're more than great coats," and they aim to deliver that statement. The company does this by constantly staying on top of trends and seeking the best prices, developing innovative money-saving methods and passing those discounts to their customers. In addition to streamlining their inventory and supply-chain procedures to ensure efficiency, Burlington Coat manages to consistently register sales increases yearly.

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Retail Structure and Merchandising Strategy

Its chief competitors/market rivals are Bed, Bath and Beyond, TJMaxx, and Ross stores.

Burlington Coat Factory Warehouse Corporation's main sales platform is its large stable of warehouse-style discount retail outlets. There are also three sub-divisions, called Baby Depot, Luxury Linens, and a subsidiary chain of stand-alone high-end retail stores under the name of COHOES. Additionally, there are two free-standing Baby Depot stores, and one combination Baby Depot/Luxury Linens outlet (Bloombergs, 2011). The main retail discount stores are known as "Burlington Coat Factory" stores (Covell & Stansell, 2004).

In the Burlington Coat Factory stores, a wide array of merchandise can be found. Though originally the company's focus was on coats and outerwear, corporate ownership quickly realized the need to expand its offerings to include other market segments. The reason was in order to gain revenues outside the restriction of the coat segment. The biggest sales areas for Burlington Coat Factory are (by order of sales shares from greatest to least in terms of percentage of total retail sales): coats and outerwear; menswear; women's wear and accessories, including shoes; children's furniture, clothing, accessories, and toys; and home fashions and furnishings, including bedding and other linens (Covell & Stansell, 2004).

Baby Depot is a specialty division of Burlington Coat….....

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