Fortune 500 Departure: Burlington Stores Relocates Corporate HQ to Philadelphia in $370M Move
the staff of the Ridgewood blog
Trenton NJ, In a major blow to New Jersey’s corporate footprint, retail giant Burlington Stores has announced plans to relocate its primary U.S. headquarters from New Jersey across the river to Philadelphia.
The massive $370 million investment is projected to bring 2,000 new jobs to Pennsylvania over the next five years, according to Pennsylvania Governor Josh Shapiro. The departure highlights mounting concerns over New Jersey’s business climate, corporate tax rates, and regulatory landscape.
NJBIA Warns of Impact on State Competitiveness
Following the announcement, Michele Siekerka, President and CEO of the New Jersey Business & Industry Association (NJBIA), issued a stark warning regarding the state’s economic trajectory.
“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,” Siekerka stated.
Siekerka emphasized that while corporate moves stem from multiple factors, New Jersey’s high tax burdens and business regulations play a undeniable role in driving major employers out of state.
Key Economic Losses for New Jersey
The departure of Burlington Stores leaves significant gaps in New Jersey’s local economy and tax base:
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Loss of Corporate Headquarters: Deprives the state of executive leadership, high-paying corporate roles, and prestige.
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Forfeited Job Growth: New Jersey misses out on 2,000 future expansion jobs.
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Property Tax Revenue Impact: Leaves a massive 441,000-square-foot facility vacant, reducing municipal property tax contributions.
Tax Disparity: New Jersey vs. Pennsylvania
A central point of friction for business leaders remains the widening gap between corporate tax environments in the region:
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New Jersey Corporate Tax Rate: Stands as the highest in the nation at 11.5% (including the 2.5% Corporate Transit Fee).
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Pennsylvania Corporate Tax Rate: Currently lowering its top corporate 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,” Siekerka noted.
Calls for Policy Reform to Stop Corporate Flight
To prevent further departures of top job creators, the NJBIA is urging state lawmakers to adopt business-friendly reforms, including:
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Making Permanent the Sunset of the 2.5% Corporate Transit Fee (currently set to expire Dec. 31, 2028).
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Pausing Proposed Regulatory Burdens, such as the Climate Superfund Act and strict Independent Contractor rules.
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Re-evaluating DEP Land Use Rules to ease building and development restrictions.
As highlighted in Focus New Jersey’s recent Missed Opportunities report, business leaders caution that without significant legislative pivots, New Jersey risks losing more landmark employers to neighboring states.
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Tags: New Jersey Business, Burlington Stores, NJ Economy, Corporate Tax, Philadelphia, NJ State News, NJBIA
