BBURLBurlington Stores, Inc.

Burlington sells branded clothing at a deep discount — what did not sell elsewhere.

Goods are bought when a manufacturer or another chain ends up with a surplus: sizes misjudged, the season changed, an order cancelled. Such a lot costs noticeably less than wholesale, and the shop sells it at a discount while still earning. The range changes constantly, and shoppers come to see what has turned up.

The model strengthens in hard times: the worse conventional retail does, the more surplus reaches the market and the more willingly shoppers hunt for a bargain. The weak point is dependence on other people's mistakes: in a year when everyone judged their buying well, there is less merchandise to resell. Risks: logistics costs and labour. The company pays no dividend.