Burlington stores shrinking

[Brian Lutz]

Before the Holidays, I went into the Cascade Plaza store in Beaverton, OR and noticed that about 20% of the store was walled off. Even with the remaining space, inventory was light. I figured it was because they were short on inventory but now it seems like this is a corporate wide decision. The men's department really felt light and there were no suitcases, which was the reason I went in there originally.

That's true. I've seen times (especially in between seasons) when the Burlington store here has been rather thin on inventory, at times to the point of looking like they were in the middle of a liquidation sale. Given the nature of these stores it's not uncommon for inventory levels to fluctuate (I've seen the same in Ross stores, although not to that extent) but Burlington stores seem more prone to it than some.

[Jeff]

Burlington has shrunk stores here as well.

Arcadia was a former 2-level store that took over a former Hinshaws department store. Several years ago they closed off the upper level of the store and made all the departments downstairs. There are several areas down there that are completely thin and spread out. I am shocked they havent downsized further.

Same goes for their Whittier store. It was a former 3-level Hinshaws department store. They only ever used the lower two levels (main level and basement level). The basement area was closed off and was where the restrooms were. It was weird last time to do down there and use the restroom in a closed area.

They are opening a new location in part of a former Home Depot. Has to be about 35k feet as they also built a Ross and DD Discount next door.

Carson was opened in the upper level of a former Sears store. They took the upper level, but If I recall, they only took around 35-40k of that level and the rest of it was "permanently closed".

[ClownLoach]

In Vista, CA last Spring they relocated a store that was in a former Big Kmart across the freeway to a dramatically smaller location that was a closed PetSmart. Probably a 75% reduction in space.

[Alpha8472]

The 2 story Burlington in Concord, California closed and relocated to a smaller single story building that was a former Toys R Us in Pleasant Hill, California. The new store is smaller, but it is very new and has a nice exterior.

There is a Burlington in Dublin, California that is 2 stories, but the second floor has a huge area that is portioned off with tall dividers. I do not know what they are doing with that empty space. That Burlington seems very tiny compared to the new one.

There is a Burlington in San Leandro, California which is a single story. It is about 4 years old and inside of a former Sports Authority. That one is quite large. It feels like it is 40,000 square feet and has a great selection.

[buckguy]

They may not be the only ones shrinking. This reminded me that I went to a newly opened Marshall's near Cleveland a few months ago. It replaced a store that was a mile or so away. It was easily one-third smaller than the one it replaced. It was fully stocked, which is understandable because it was fairly new, but it reminded me how poorly stocked their stores can be I was in another one---a high volume location a few miles away from the new one more recently. It had quite a few areas that were poorly stocked. I've also noticed that Marshall's has largely eliminated the overlap with TJ Maxx locations.

Retailers have gotten better control of inventory management over time which means there's less true closeout merchandise for these places and COVID shortages have compounded that. The Nordstrom Rack model which clearly mixes close-outs with made for outlet merchandise seems like the future for these places. Basically, all they really did was replace department store bargain basements, which mostly operated on a model like Nordstrom Rack. The remaining off-price stores will have to compete for the "made for outlet" stuff with Costco and probably others. Costco seems to be gradually increasing their clothing and it's a mix of name brand (obviously packaged and manufactured for them) and no name.

[BillyGr]

They may not be the only ones shrinking. This reminded me that I went to a newly opened Marshall's near Cleveland a few months ago. It replaced a store that was a mile or so away. It was easily one-third smaller than the one it replaced. It was fully stocked, which is understandable because it was fairly new, but it reminded me how poorly stocked their stores can be I was in another one---a high volume location a few miles away from the new one more recently. It had quite a few areas that were poorly stocked. I've also noticed that Marshall's has largely eliminated the overlap with TJ Maxx locations.

Retailers have gotten better control of inventory management over time which means there's less true closeout merchandise for these places and COVID shortages have compounded that. The Nordstrom Rack model which clearly mixes close-outs with made for outlet merchandise seems like the future for these places. Basically, all they really did was replace department store bargain basements, which mostly operated on a model like Nordstrom Rack. The remaining off-price stores will have to compete for the "made for outlet" stuff with Costco and probably others. Costco seems to be gradually increasing their clothing and it's a mix of name brand (obviously packaged and manufactured for them) and no name.

Not to mention that over time all these types of chains have continued to expand, which also makes it harder to stock (a buyout of something that would be enough for, say 100 stores isn't enough if you have 200, 300 or more).

There are a few smaller chains out there, but not nearly as many as there used to be.

[dcpeachy]

I just came from a shrinking Burlington in Albuquerque (Montgomery Plaza location). The store used to be a large L-shaped store, with a lower level for one side of the L. They have walled off the escalators to the lower level (used to be baby and coats) and are in the process of walling off the east-west leg of the L (home). They have also relocated the entrance from the vertex of the L to the side, near where the wall blocking the escalators is. Construction is ongoing, as everything appears to be on temporary shelving set up in aisles, unlike how this store was previously merchandised on very nice fixtures. Burlington also recently relocated and downsized the Cottonwood location from half of a former Home Base, across the street to 1/4 of a former Walmart (1/2 of a Gordman's), shared with Dick's and 5 Below.

Digging around, the leasing agent for Montgomery Plaza has a site plan that shows a proposed TJMaxx taking over the east-west leg of the L and the rest of the space being carved into other spaces. A TJMaxx there would almost certainly replace the TJMaxx down the street at Louisiana Plaza.

[Alpha8472]

I have noticed a discount clothing store overload in recent years. Burlington often opens up stores in the same shopping centers as Ross, Marshall's, or TJ Maxx. Are there too many of these stores now?

I also see many Homegoods stores in the same shopping center as TJ Maxx. Are they not owned by the same company?

There are 2 Old Navy Stores in Concord, California several hundred feet away from each other in separate strip malls.

[babs]

I have noticed a discount clothing store overload in recent years. Burlington often opens up stores in the same shopping centers as Ross, Marshall's, or TJ Maxx. Are there too many of these stores now?

I also see many Homegoods stores in the same shopping center as TJ Maxx. Are they not owned by the same company?

There are 2 Old Navy Stores in Concord, California several hundred feet away from each other in separate strip malls.

The theory with placing similar stores in the same center is that it will attract a larger crowd who wants to shop all these stores in one trip. It does seem to work. Now placing two Old Navy stores near each other seems dumb.

[storewanderer]

I have noticed a discount clothing store overload in recent years. Burlington often opens up stores in the same shopping centers as Ross, Marshall's, or TJ Maxx. Are there too many of these stores now?

I also see many Homegoods stores in the same shopping center as TJ Maxx. Are they not owned by the same company?

There are 2 Old Navy Stores in Concord, California several hundred feet away from each other in separate strip malls.

The theory with placing similar stores in the same center is that it will attract a larger crowd who wants to shop all these stores in one trip. It does seem to work. Now placing two Old Navy stores near each other seems dumb.

Given the unpredictable nature of these stores I think they are hoping they can pick customers off of one another by being close together. The customers who go shopping in these stores are often not in a big hurry and don't think much of spending a while digging around the stores to find things. They know going in what they are getting into (they don't know what they might find).

Where these stores lose it with me, especially Burlington, is with checkout speed. Absolutely terrible checkout speed, long lines, and just a miserable experience trying to actually make a purchase.