Great News for 2024! Customers Are Trading Down to Burlington and Buying Higher-Priced Goods
There's nothing special about Burlington Stores' (NYSE: BURL) business model. It sells cheap stuff to people who like to hunt for bargains. However, 2023 did come with an important shift in the business that is good for today, but could also be a long-term benefit if the company plays the trend well. Here's what you need to know.
This is an article about Burlington, but there's a broader trend at play in the discount retail space. For example, during Dollar General's (NYSE: DG) third-quarter earnings conference call, management made a point of highlighting that traffic in its stores has been increasing of late. This company mostly sells basics, so it suggests that consumers are worried about the economic outlook and are trying to stretch their dollars. Some of the new customers are likely trading down from retailers with higher price points. Other discount retailers have seen the same trend.
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Source Fool.com
