What we think about Ollie's Bargain Outlet (OLLI)
Ollie’s operates roughly 25,000-square-foot stores that have a massive selection of items across a broad range of categories — everything from K-cups to small appliances, household items, and seasonal favorites — at massive discounts compared to traditional retailers. The company sells an ever-changing selection of merchandise that gives loyal customers a reason to come back often.
The other players in this space — Big Lots and Ocean State Job Lot to name two — have sprawling big box stores. Ollie’s instead has smaller stores that are incredibly well merchandised. The retailer uses its space really well. It’s clean and well-organized while offering a staggering array of items. These stores are packed floor to ceiling without any space being wasted, but they don’t feel crammed or messy.
Ollie’s has a really simple strategy of buying cheap and selling cheap. It’s committed to doing that and has grown slowly (but steadily) so it can maintain its supply chain and keep delighting existing customers while winning over new ones.
It’s a simple formula but it’s one that has proven to be a driver for brick-and-mortar retailers. Consumers will leave the house for a deal — and they’re even more excited by a treasure hunt. You can count on Ollie’s for certain items that are always in stock in some some form, but you also never know what’s going to be on the shelves which drives repeat business, customer delight, and incredible loyalty.