Burlington Stores, a 54-year-old company literally named after the New Jersey town in which it was founded in 1972, is moving to Philadelphia, it was announced Thursday.
The company is investing $370 million in the move, purchasing property at 3151 Market Street in West Philadelphia, which will serve as its new corporate headquarters. Pennsylvania officials say the move will create at least 2,000 jobs in the next five years.
The assumption is that the move is based on an effort to avoid the increasing costs of doing business in the state of New Jersey.
Pennsylvania certainly did its part to incentivize Burlington to move.
Coordinated by Gov. Josh Shapiro’s BusinessPA team, Burlington received a funding proposal from DCED for a $20 million Redevelopment Assistance Capital Program grant and a $10 million Pennsylvania First grant.
The City of Philadelphia is supporting this investment with incentives including a $7 million forgivable loan and a Job Creation Tax Credit award. SEPTA and the Philadelphia Parking Authority also stepped up to offer deeply discounted commuter savings for new Burlington employees in the city.
Burlington Stores CEO Michael O’Sullivan celebrated the announcement.
“We are very excited to be relocating our corporate headquarters to Philadelphia,” he said. “We are one of the fastest growing retailers in America, and as we evaluated different options for our new corporate home, we were strongly attracted to the energy, talent and infrastructure that Philadelphia has to offer.
“Add to that, we found the vision and priorities articulated by the Mayor (Cherelle Parker) and the Governor (Josh Shapiro) extremely compelling — fiscal health, education and training, and economic opportunity for all. We look forward to supporting and being part of that vision.”
The office of New Jersey Gov. Mikie Sherrill did not immediately respond to a request for comment.
Shapiro, who has made business attraction and affordability a hallmark of his administration, was eager to add his thoughts.
“Pennsylvania is competing to win — and today, we’re delivering a major win for Philadelphia and our Commonwealth,” he said. “Burlington is a fast-growing Fortune 500 company and they have committed to invest hundreds of millions of dollars in our economy and create 2,000 new jobs in our Commonwealth as part of the largest headquarters relocation to the city in years.
“Our economic development strategy makes smart, targeted investments to make choosing Pennsylvania an easy yes for major companies like Burlington, create good-paying jobs in our Commonwealth, and strengthen our communities. It’s working — and we’re going to keep showing the world that Pennsylvania is open for business.”
Burlington’s departure is the latest of recent losses for the state, including Samsung, MarsWrigley and ExxonMobil.
Michele Siekerka, the CEO of the N.J. Business & Industry Association, said the move is a tough loss for the state — while warning it may not be the last unless New Jersey becomes more business friendly.
“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, as well as another Fortune 500 company,” she said. “While corporations make these decisions for a myriad of reasons, we cannot and should not ignore the impact our state’s tax policies and anti-business policies have on our overall competitiveness. Nor should we diminish the loss of executive presence in our state, the number of new jobs that New Jersey will not have, and the amount of property tax lost from a 441,000-foot facility.
“Obviously, New Jersey maintains the highest corporate tax rate in the nation at 11.5%, while Pennsylvania is on a course to lower its top rate down to 4.9%. We have often said that many businesses do have the opportunity to move just across the river for a more competitive business environment, and we can certainly assume that figured into the decision here.”
Christina Renna, the CEO of the Chamber of Commerce Southern New Jersey, was equally dismayed.
“Burlington Stores’ decision to relocate its corporate headquarters from its longtime home of Burlington County to Philadelphia is deeply disappointing for the South Jersey business community and should serve as a wake-up call for policymakers in Trenton,” she said.
“New Jersey does not compete for jobs and investment in a vacuum. 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 Stores is a nationally recognized off-price retailer and one of the fastest growing retailers in the country. It operates 1,300 stores in 47 states, including more than 43 in the Philadelphia market.
