Another major retailer is leaving New Jersey—the third large company to exit the state this year.
Burlington Stores Inc. (formerly Burlington Coat Factory) announced that they would move their headquarters from Burlington, NJ to Philadelphia after 50+ years based in the Garden State.
It’s part of a $370 million investment deal with Pennsylvania; the state is contributing $30 million to support the move. It’s projected to create 2,000 jobs over five years.
CEO Michael O’Sullivan said in a press conference that Burlington has “outgrown” its current location, and was drawn to Philadelphia’s “energy, talent, and infrastructure,” according to NJ.com. However, O’Sullivan was adamant: the move is not indicative of New Jersey’s business climate, and the brand is still growing within the state.
Currently, there are 8,000 brand associates in New Jersey—only a fraction will transition to Philly.
Still, despite what the CEO says, the move will bring some tax relief to Burlington Stores Inc. New Jersey boasts the highest corporate tax rate in the country at 11.5%. Pennsylvania, on the other hand, cut its rate to 7.49%, targeting 4.99% by 2031.
NJ Business Leaders React
Reaction from New Jersey’s business community was swift, and unsparing.
“It is very sad that New Jersey is losing Burlington Stores, which is an iconic brand in our state named for one of our own municipalities,” Michele Siekerka, president and CEO of the New Jersey Business and Industry Association, told NJ.com.
Christina Renna, president and CEO of the Chamber of Commerce Southern New Jersey, called the move “deeply disappointing” for the region’s business community, according to ROI-NJ, and said it should serve as “a wake-up call for policymakers in Trenton.”
“New Jersey does not compete for jobs and investment in a vacuum,” Renna said. “Our neighboring states are aggressively pursuing businesses with competitive tax structures, economic incentives and policies designed to attract investment and encourage growth. Pennsylvania’s willingness to make a significant investment to attract Burlington demonstrates just how intense that competition has become.”
Burlington’s departure isn’t an isolated case. In June, Samsung Electronics announced it was relocating its U.S. headquarters from Englewood Cliffs to Plano, Texas—a move affecting 1,000 employees.
And on July 1, ExxonMobil, whose New Jersey roots trace back to 1882 as Standard Oil Company of New Jersey, officially made Texas its legal domicile after shareholders approved the change, also citing a friendlier business climate.
Now, Burlington Stores Inc. joins them. There’s a particular irony to this one: a company literally named after a New Jersey town will now be headquartered somewhere else entirely.
Lifelong Jersey resident and Rutgers and FDU alumnus, Tom La Vecchia is publisher of New Jersey Digest, one of the state’s leading lifestyle media brands. When he’s not growing the Digest, he’s raising four kids, wrangling four cats and pretending it’s all under control. His mission: keep Jersey interesting and impossible to ignore.
