Burlington Stores Quits E-Commerce to Focus on Brick-and-Mortar Presence
In a move that breaks wildly from the industry's current norms, off-price retailer Burlington Stores (NYSE: BURL) is getting out of the e-commerce game so it can focus on its brick-and-mortar stores. CEO Michael O'Sullivan told investors during last week's fourth quarter earnings call, "the nature of the treasure hunt and the average price point that we operate at mean that bricks-and-mortar stores have a significant competitive and economic advantage over e-commerce."
Image source: Getty Images.
He's not wrong. The off-price retailing industry's so-called "treasure-hunt" experience is rooted in the idea that one particular store may only have a handful of certain items in stock, which a shopper serendipitously comes across. Selling online means a retailer must be able to keep enough breadth and depth (color, size, etc.) available to make such an operation viable even at modest scale. Sometimes, depending on how inventory is procured, Burlington may not even be exactly aware of what it's buying and reselling.
Source Fool.com
