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Earlier this month, Pennsylvania officials celebrated an economic development coup. Across the Delaware River, New Jersey business leaders saw the latest sign of a mounting crisis.

The discount clothing retailer Burlington announced it will move its corporate headquarters — and thousands of employees — from South Jersey to Philadelphia’s University City neighborhood.

During a press conference at the company’s future offices at 3151 Market St., Gov. Josh Shapiro celebrated the prize of an additional Fortune 500 company making its home in the state and riffed on his administration’s broader economic success.

“Moody’s showed that we’ve got the only growing economy in the northeastern part of the United States,” he said. “A big part of that is because of the incredible growth that we’re seeing here in Philadelphia. A big part of that is because of our hard-nosed competitive approach to economic development.”

Gov. Mikie Sherrill did not immediately comment, but New Jersey business groups expressed distress over the loss of another marquee company and the expected economic fallout. They called on policymakers to cut the corporate income tax rate and counter the aggressive courting of companies by Pennsylvania, Texas, Florida and other states.

“This announcement should reinforce the urgency of making our state more affordable and competitive,” said Christina Renna, president of the Chamber of Commerce Southern New Jersey.

New Jersey cannot afford to lose more big employers, she and others said. The state is already routinely listed as having one of the nation’s weaker economies; in the October 2025 Moody’s analysis cited by Shapiro, it’s one of 22 states listed as already being in a recession, and it’s unclear if any new economic stimulus efforts are coming.

Asked last week whether Sherill was working on measures to retain corporations, her office pointed to her efforts to streamline permitting and make government more responsive.

A spokesperson also cited recent expansion announcements by three biopharmaceutical firms — BeOne, Celltrion and Celularity — and a 45% increase in the number of films produced in the state this year.

“While we are disappointed by Burlington’s decision to relocate its headquarters, the company will continue to maintain a significant presence and thousands of jobs here in New Jersey,” the spokesperson told WHYY News. “Gov. Sherrill remains focused on strengthening our business climate, attracting new investment, and creating more opportunities and good-paying jobs for New Jersey workers and families.”

Rebranding as a ‘next-gen player’

Burlington decided to move as part of a post-Covid consolidation of employees who work at three sites in South Jersey, the Philadelphia Business Journal reported.

During the search for a new home, CEO Michael O’Sullivan prioritized buying a space that could accommodate all those workers and provide easy access to the company’s New York offices via train. Burlington ended up spending $240 million to buy the office building in Schuylkill Yards, steps away from Amtrak’s 30th Street Station.

In addition to the brand-new, Class A office space, the dynamism of a big city and the opportunity to draw talent from nearby universities likely made the West Philly site attractive, said John Boyd, a corporate relocation specialist whose company is active in the tri-state region.

Burlington will reportedly move 1,600 employees to the new office and hire another 400 to work there.

“Burlington and so many of its competitors are really becoming high-tech companies with respect to software, incorporating artificial intelligence into optimized buying, optimizing their supply chains,” he said. “Those relationships with universities like Drexel and UPenn and Temple bring a lot to the table.”

The decision also underlines a broad change in how firms approach headquarters relocations in the era of hybrid work, Boyd said. Moves are no longer seen as mere shufflings of real estate and people.

Burlington reportedly explored relocating to towns near Amtrak stations in New Jersey, including Trenton, Princeton and New Brunswick, but ended up opting to cross the river.

“They view the relocation process as an opportunity to rebrand the company, to turn a page in the company’s history,” Boyd said. “This is a company with a storied history in New Jersey, 54 years in New Jersey. This is Burlington becoming a next-gen player in the retail space, and this new Philly headquarters allows them to do that.”