Burlington Stores has opened a roughly 2 million square foot automated distribution center in Ellabell, Georgia. It is the retailer’s first facility in the state and was built to move its fast-changing off-price assortment to stores faster than its existing network can. Among the major off-price chains, Burlington is the one putting automation at the center of its DC expansion. Ross and TJX have not used that language in their own growth plans.
What's inside: The facility runs more than 25 miles of interior conveyor, automated sortation, and custom software tuned for off-price retail’s high-touch and unpredictable flow. It is expected to employ around 1,500 people and is more than twice the size of Burlington’s previous largest DC. Burlington has not disclosed the cost of the building.
Why it's built this way: Off-price works with a constantly changing assortment instead of stable SKUs. The DC is built for speed and flexibility over throughput consistency. Chief Supply Chain Officer Greg Shultz said the network is “automated and designed for flexibility, speed and efficiency,” and called this center “unique,” with automation “an integral piece to our growth story.”
CFO Kristin Wolfe told analysts on the Q4 call that the DC is “highly automated.” She said new buildings usually take about two years to fully ramp, but expects “significantly faster processing time” here.
Early returns: Burlington’s supply chain costs improved 30 basis points in Q4 FY2025, driven by DC productivity and cost savings initiatives before this facility opened. The company expects supply chain costs as a share of sales to stay roughly flat as new-facility start-up costs offset those productivity gains.
Where it diverges: Ross built a comparable 1.7-million square foot DC for $450 million but did not highlight automation in its disclosures. TJX’s has directed more of its capex toward opening new stores.
What's next: A second similar DC is under construction in Buckeye, Arizona. Together, the two buildings add roughly 4 million square feet and support a plan for 110 new stores. Whether Wolfe’s expected “significantly faster” ramp happens is the thing to track. An automated backend that clears assortment faster than the old network is what allows Burlington to add stores without proportional cost growth.
