’s updated stores are generating sales volumes similar to those of their larger predecessors. He also said sales per square foot have increased significantly, with four stores – two each in the Philadelphia and Miami markets – operating successfully at this size, seemingly confirming that customers are embracing the refined format. While maintaining annual sales of approximately US$10 million in a 25,000sq ft store may seem too good to be true compared with an 80,000sq ft location, O’Sullivan said it is achievable through strategic operational changes. For example, Burlington’s buyers have become more effective at selecting merchandise, noting that since 2018, stores have reduced inventory by about 35 per cent. Lower inventory levels have created a less cluttered, more refreshed feel, boosting sales. This appears to be supported by Burlington’s most recent fiscal report, which revealed that total sales increased 14 per cent year over year in the first quarter of fiscal year 2025 to US$2.9 billion, while comparable store sales rose 6 per cent year over year. What experts have to say about Burlington’s diminished store size Christine Russo, principal of Retail Creative and Consulting Agency, said Burlington’s decision to downsize is a strategic move that follows several competing discount retailers. As Russo told Inside Retail, “Burlington is the third leading off-price retailer behind TJ Maxx and Ross Dress for Less. If they assessed the competition, they would see that their store sizes averaged around 23,000sq ft. This is one of several signals that may have informed the decision.” Because Burlington does not operate an e-commerce platform, moving to smaller stores is a smart, data-driven decision based on improved assortment planning and stronger merchandise turnover. Neil Saunders, managing director at GlobalData, shared a similar view. “While the downsizing sounds dramatic, it brings Burlington into line with other off-price players that operate this kind of footprint,” Saunders said. “If anything, the older, huge stores were the exception, and that format was not always efficient, as it was full of stuff and hard to shop. A smaller footprint also gives Burlington the flexibility to expand, as it’s much easier to find units of 25,000sq ft than units of 100,000sq ft. Burlington has also become sharper in its buying operation, so it simply doesn’t need as much space as it’s able to focus ranges more, including on a seasonal basis. That aids the productivity of the store and ultimately profitability.” Burlington’s challenge will be keeping the thrill of the “treasure hunt” alive O’Sullivan said that by the end of the year, Burlington will have just over 1,300 stores, up from more than 700 in 2019, when he was promoted to CEO. By 2028, he said, Burlington expects to have 1,500 stores, approximately 80 per cent of which will be using the downsized format, either through existing stores relocating to smaller premises or new stores opening at the reduced size. Barney Stacher, CEO of consultancy firm Stacher & Stacher, believes the company faces a different challenge. Burlington has long been known for encouraging customers to hunt for “treasure” among its previously more jumbled assortment of goods. “My perspective is that the headline isn’t really that Burlington is shrinking stores,” he told Inside Retail. “It’s that Burlington is attempting to shrink inefficiency.” The bigger question, he added, is whether a 25,000sq ft store can deliver the same “treasure hunt” experience that helped define off-price retail in larger formats. Off-price success has always depended on balancing discovery, inventory productivity and operating costs, and Burlington must preserve the excitement of the hunt while increasing sales per square foot and accelerating expansion into new markets. To preserve that sense of discovery with a smaller footprint, Burlington should focus on creating a more curated version of the treasure hunt, rather than simply a smaller one. This could include increasing inventory turns so merchandise changes more frequently, creating highly visible “new arrivals” and limited-time opportunity zones, rotating categories and featured brands more aggressively, and using localised assortments to make each store feel unique to its market. Burlington can lean into the psychology that has always driven successful off-price retail: the feeling that if you don’t buy it today, it may not be there tomorrow. Scarcity, surprise and freshness matter more than square footage. “In many ways, consumers today have less patience for endless searching than they did twenty years ago. The opportunity for Burlington is to translate the thrill of discovery into a more efficient and convenient shopping experience. A smaller store that is easier to navigate, more frequently refreshed and packed with compelling finds may actually enhance the treasure hunt rather than diminish it.” If executed well, Stacher argued that Burlington’s smaller stores could improve profitability through higher inventory productivity, lower occupancy costs, faster expansion and better market coverage. If not, the company risks reducing the very sense of discovery that differentiates off-price retail from traditional value retail. “Ultimately, the question isn’t whether 25,000sq ft is enough space. The question is whether Burlington can preserve the excitement of the hunt while creating a format that better aligns with how consumers shop today,” concluded Stacher. Further reading: Why Miniso is aping Disney to fuel its US expansion