Burlington will close its ecommerce site, which will only make it harder for the retailer to drive traffic to its stores.

WHAT HAPPENED: The off-price retailer will shut-down its ecommerce website to focus on opening more stores. It plans to open 54 new smaller-format stores in 2020.

WHY IT MATTERS

  • While the in-store “treasure hunt” fuels the off-price model, Burlington needs to digitize this shopping experience. Burlington was one of the first off-price retailers to embrace ecommerce (starting in 1999). However, the company never really evolved its approach—ecommerce is less than 0.5% of its total revenue. Instead of closing its ecommerce site, Burlington should invest in developing its digital footprint to remain competitive with other off-price retailers and digital resale platforms. While TJX’s online sales represent around 5% of its revenue, the parent company launched Marshall’s ecommerce site late last year and is consistently introducing new features to entice customers to shop online and in-store.