How Burlington Added New 700 Stores In 10 Years

Over 40% of new Burlington stores that opened over the past decade are in sites vacated by bankrupt retailers--and the Company has pursued a number of strategies to secure these locations.

Just 10 years ago Burlington Stores operated ~600 off-price retail stores throughout the U.S. But Burlington has more than doubled its store count over the past decade to more than 1,300 sites (and counting).

So where did Burlington find the real estate to add over 700 new stores in 10 years? Largely from space vacated by bankrupt retailers. Over 40% of Burlington’s net new store openings over the past decade were in real estate vacated by just 5 bankrupt retailers: Kmart, Bed Bath & Beyond, Toys R Us, Joann Fabrics and Sports Authority.

Burlington now operates a store in:

Over 80 former Kmart buildings
More than 75 Bed Bath and Beyond suites
Over 55 former Toys R Us stores
At least 45 Joann Fabric store sites
Approximately 40 former Sports Authority sites

Another interesting point about these backfills? Burlington secured much of the space without even negotiating a new lease with landlords. Instead it purchased leases of 64 former Bed Bath sites and at least 45 former Joann Fabrics’ stores during bankruptcy auctions.

These lease acquisitions provided Burlington with immediate access to the spaces without having to compete with rival retailers or even execute new leases. Leases acquired from retailer bankruptcy estates have comprised a significant percentage of Burlington’s recent store openings.

Close to 1/3 of Burlington’s 2025 new stores were comprised of leases that the Company acquired of retailers that filed for bankruptcy in 2024 and include:

15 Conn’s Home Plus leases
13 Big Lots leases; and
2 Party City leases

While Burlington’s lease acquisition strategy has enabled it to rapidly acquire large blocks of desirable real estate it did so at a significant cost. For instance Burlington purchased the 64 former Bed Bath leases for ~$12 million and then paid ~$20 million in rent on those leases prior to even opening stores at the leased sites. Additionally, Burlington funded the buildout and renovation of the former Bed Bath spaces without any contributions from Landlords.

Another issue with the lease acquisition strategy: Some landlords are not happy when Burlington acquires leases in their shopping centers. In February 2026 Burlington Stores bid $22 MM to acquire 22 leases of Saks Off Fifth, the off price division of Saks Global. Saks Global had filed for chapter 11 bankruptcy in January 2026 with plans to divest its off price stores and restructure as an exclusively a luxury retailer. For Burlington it was an excellent opportunity to add a critical mass of stores that fit with both its off price retail model and its near term store growth plans.

The Saks Off Fifth leases may comprise up to one fifth of the ~100 new stores that Burlington plans to open in 2027. But first the lease sales needed to be approved by the bankruptcy court—and some Saks Off Fifth landlords were not happy with the proposed transaction. A few landlords objected because they allege that the presence of a Burlington store would “destroy” their shopping center’s image as a home to luxury brands. Others complained that a Burlington store would not be a permitted use in their shopping center and may trigger co-tenancy violations that could allow other tenants to either terminate their leases or pay lower rent.

Still the sale of at least 7 of these leases was approved by a bankruptcy judge this past Spring. Additionally a separate—but related—settlement was reached between Saks and Simon Property Group paved the way for additional Burlington lease purchases as Simon Property Group is both one of Saks’ largest landlords and the owner of several properties with leases that Burlington sought to acquire.

So where might Burlington add new sites in 2027 and beyond as it marches toward its long term target of 2,000 stores? It may just depend on the retailers that file for bankruptcy in the coming years.