Fall 2011 - Burlington Coat Factory

Fall 2011
An introduction to our business…
Burlington Coat Factory is one of the leading off-price apparel and home product
retailers in the United States
We deliver value to our customers by featuring high-quality branded apparel and home products at every-day low prices
While we are known for Coats and dominate in that category, we also have substantial businesses in Ladies, Men’s, and
Kids apparel, Baby products, Home Décor, and a variety of other categories
We operate more than 460 stores across 46 states and Puerto Rico under the Burlington, Burlington Coat Factory, Baby
Depot, Cohoes, and MJM nameplates
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A typical Burlington Coat Factory store is 80,000 square feet . . . more than twice the size of most off-price competitors
That allows us to have assortments which are much broader and richer than any of our competitors: more categories,
more brands, and more products. That translates into more great deals for our customers
And, virtually all of our stores are profitable! We focus our operating model and our customer communications to
unlock the potential for each and every location
With almost $4 billion in sales, we are number 83 and rising on the NRFs 2011 list of top 100 retailers
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Our history
500
Number of stores over time
We continue to thrive and
grow today, and we are
gearing up to
accelerate
from here!
450
400
2000 saw the launches
of our national baby
registry and our
dot.com online
business
350
300
250
In 1974 we added
children’s apparel
In 1997 we began
operating our own
shoe department
200
150
100
We started
with Coats,
but quickly
added Men’s
and Ladies
fashions
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And in 1982 we expanded
to baby products and
accessories
1987 marked the
introduction of Linens and
other Home categories
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Our first store was opened in 1972
by Monroe Milstein, whose family
had a long history selling coats at
wholesale dating back to 1924
In 1983 we went public with 31
stores, and by the end of the
following fiscal year had more
than doubled to 68 stores
In 1993 we hit sales
of $1 Billion
for the
first time
In 2006 we became
privately owned by
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Our customer loves to shop, and loves knowing she can find great
every-day deals in our stores
Our core customer is 25-44 years
old, and earns more than average
($62,000 household income)
She is ethnically diverse, just like
America, but she is slightly more
likely to be African-American or
Hispanic
She is a brand conscious fashion
enthusiast who really enjoys
shopping for clothes and likes to
keep up with fashion trends
She is also value conscious and
knows that clothing at off-price
stores is just as good as what she
can find in a department store
Great deals are important to her
Our customers love to shop, and they
spend close to $5,000 a year across all
retailers in the categories we compete in
Our best customers shop our stores
every month and spend more than $500
a year with us. They find great values
across all of our categories, and
purchase more than 40 items from us
every year
The average Burlington customer shops
our stores 3 times during the year for
many powerful reasons:
 She is on a mission for a specific
item, such as coats or baby products,
and knows we offer great
assortments and value
 She is an active shopper who enjoys
treasure hunting for great branded
deals, especially in ladies apparel
 She is a mom meeting her
household’s needs and finding great
values across our kids, home, and
men’s assortments
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We have fantastic assortments across all of our categories
Our Home Store offers a large selection of linens,
home furnishings and gifts from some of the top
name brands in the industry.
We are one of
the leading
children’s
wear
providers in
the country.
Over 65% of
our customers
have children
in their
households,
and we have
the looks and
brands kids
want at
savings that
their parents
love.
Baby Depot offers trusted brands
at the guaranteed lowest prices,
as well as an in-store and online
Baby Registry.
Baby
Coats
Home
Youth
Shoes &
Accessories
Burlington is
increasingly
known as a
destination for
shoes and
accessories. In
our newer
stores , we
place these
important
categories
front and
center to make
it easier for
customers to
cross-shop.
Burlington’s Men’s assortment provides a oneAs one of the largest retailers of coats,
stop shopping experience. We have clothing for the
and the undisputed Coat Authority,
the office, casual attire for the weekend, athletic gear
Burlington is the first place customers
for the gym, as well as basics like underwear and socks.
think to shop for coats.
Men’s
Ladies
Fashions
We are the
favorite store for
smart shoppers looking
for the latest styles at the
best prices. They trust us
to know current trends
and make it enjoyable for
them to find great deals
on fashionable seasonal
items every time they
visit us.
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Our operating model is simple and proven
Our founder Monroe Milstein had a simple philosophy for retail success, and we continue that tradition today:
“If an item is selling, reorder it. If it isn’t, mark it down. And I can never forget those three words my father taught
me - selection, quality, and value.” - Burlington Coat Factory 2005 Annual Report
GREAT PRODUCT
 We maintain great partnerships with our
manufacturer and brand partners
 We stay liquid into the season; we are
always on the lookout for great deals
 We build a broad assortment that
facilitates the “treasure hunt” that our
consumers love about our business
 We strive for a selling floor that is filled
with top quality branded products at great
values for the customer
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GREAT EXECUTION
=
 Our new stores are clean, bright, and easy to shop
 We set our stores in a
very fluid flexible manner
based on current stock
positions in SKUs and
Classifications
 We flow product efficiently,
so we get our merchandise in front of our customers
quickly and seamlessly
GRATEFUL CUSTOMERS
 Every year, we have more than 200
million store visits from customers
 More than 40 million customers have
shopped with us over the past 2 years,
many of them more than 3 times
 More than 90% of our customers tell us
they find “good value for the money” at
Burlington Coat Factory
Customer Satisfaction
 We strive for good inventory
turnover, focusing first on
bringing in great product, and
then taking markdowns in a
timely manner to keep our
product flowing
 Our employees are hardworking, dedicated to continually
improving our customer’s satisfaction and making our
business successful
2007
2008
2009
2010
2011
 Our customer satisfaction scores are
strong and growing
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Our employees care about the customer and are brand evangelists for us
We have more than 28,000 employees!
Our Core Values are at the center of how we conduct
business at every level of our company, and drive our
success:
 Develops Trust & Respect
 Builds Teams & Partnerships
 Drives Results
Our employees like our brand and our stores, a majority of them are active shoppers, and employees have been an
active part of our Brag About It campaign, helping us evangelize our brand.
Because we know our employees are the key to our success, we have invested over the past few years to constantly
improve, including:



New learning and development programs to ensure our skill sets are world class
New HR systems to drive our recruiting and performance management
Our HR team is working to make us an employer-of-choice!
Our customer satisfaction has gone up 50% over the past three years based on the hard work of our employees.
We know we are headed in the right direction, with more success to come.
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Our Future
Under our current CEO, Tom Kingsbury, we have refocused the business on our core offprice model:
 Our assortments are stronger, with more diversity, improved freshness, and a better
mix designed to appeal to our core customer
 We are staying liquid into our selling season, allowing us to opportunistically take on
more great product and deliver those values to our customers
 We have more great brands featured on our selling floor, reinforcing the value we
deliver to our customers every day
 Our inventory turnover has improved, and remains a focal point for our organization
We are committed to growing our business through making our existing stores
more productive and adding new stores
 We are proud of the improvements we have made in many of our stores,
making them brighter, fresher, and more modern
 Over the past two years we refreshed more than 50 stores and
completed lighting retrofits at another 140 stores
 We continue to open more than 20 stores a year
Our customer satisfaction scores are up double digits over the past two years
We have increased our profit margins and grown adjusted EBITDA in a tough
environment through both good management of our costs, and staying focused on
creating organic growth
Our “Brag About It” campaign is resonating with customers, and when combined with
the improved intrinsics in our assortments and stores is translating into growth for our
business
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