Discovering the proper one thing on the good value is one in every of my favourite pastimes, and I’m not alone. Prospects are flocking to off-price shops like TJMaxx, HomeGoods, and Ollie’s Discount Outlet as layoffs mount and consumers tighten their budgets.
Foot visitors to those retail shops has surged in 2025, serving to drive gross sales increased amid a shift away from full-price malls, similar to Macy’s and greater shops like Goal.
Ollie’s Discount Outlet has notably benefited because of its resolution to capitalize on the chapter of one in every of its largest rivals, Huge Tons.
Ollie’s Discount Outlet at a look:
- Based: 1982, Mechanicsburg, PA
- Retailer rely: 645
- Staff: 12,792
Supply: Ollie’s Discount Outlet Holdings
Huge Tons’ failure and Chapter 11 chapter allowed Ollie’s to accumulate a slate of its storefronts. Huge Tons closures additionally diminished competitors at 290 of its 645 shops.
Alongside curiosity in a “treasure hunt” purchasing expertise and stretched budgets, Ollie’s Discount Outlet finds itself in a primary place to win clients over the vacations and into 2026.
Ollie’s Discount Outlet has storied historical past
Ollie’s Discount Outlet was based by Mark Butler, Morton Bernstein, Harry Coverman, and Oliver “Ollie” Rosenberg at Bernstein’s lumber yard in Mechanicsburg, Pennsylvania, in 1982. After visiting a Constructing 19 location in Massachusetts, Butler began the corporate based mostly on a easy premise that everybody in America loves a discount.
Ollie’s shops are stocked with closeout and overstock objects bought at a reduction and bought to clients at decrease costs than these present in malls. It goals for a 40% gross margin. If it might hit that focus on and considerably undercut costs at full-price shops, it is going to promote absolutely anything, together with cleaning soap, meals, toys, housewares, attire, and electronics.
Ollie’s Discount Outlet is seeing extra foot visitors after rival Huge Tons closed shops amid chapter.
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The corporate, recognized for its quirky, comic-book-style advertising and marketing, has been deliberate about its development, slowly however constantly opening areas. It targeted on Pennsylvania shops earlier than coming into Maryland within the Nineties. Regardless of Rosenberg’s passing in 1996, the corporate steadily expanded its retailer rely below Butler’s management, reaching 20 areas by late 2000 and 36 shops by 2005, which lifted income to $150 million that 12 months.
Ollie’s Discount Outlet retailer rely timeline:
- 2025: 645 areas
Supply: Ollie’s FAQ - 2020:388 areas
Supply: Ollie’s 2020 10-Ok SEC submitting - 2015:203 areas
Supply: Ollie’s 2015 10-Ok - 2011:100 areas
Supply: Instances Herald-Document - 2005: 36 areas
Supply: Residents Voice
To provide its rising footprint, it consolidated its distribution at a big middle in York, Pennsylvania, in 2008. A second distribution middle was opened in 2014 in Georgia, one 12 months earlier than Ollie’s preliminary public providing on the inventory market.
Gross sales proceed to develop as Ollie’s opened extra shops in new markets. In 2017, it operated 268 shops with gross sales exceeding $1 billion.
In December 2019, Butler handed away, and former Chief Working Officer John Swygert took over as CEO. The corporate’s East Coast growth continued below Swygert, with Ollie’s retailer rely rising to 559 on the finish of 2024, producing $2.3 billion in annual income.
In February 2025, Swygert transitioned to government chairman, clearing the best way for President Eric Van der Valk to imagine Ollie’s CEO title. Earlier than becoming a member of Ollie’s in 2021 as Chief Working Officer, he was president and COO of Christmas Tree Outlets, the place he’d labored for 15 years.
Ollie’s Discount Outlet strikes Huge Tons gold
Huge Tons was one in every of America’s largest low cost retailers, with 1,450 shops close to its peak in 2015. Nonetheless, a collection of missteps that muddied its low cost retailer picture and saddled it with substantial debt took a toll, as Ollie’s and different rivals lower into its market share.
The corporate, which was based in 1967 by Sol Shenk, was initially recognized for purchasing closeout auto components (Shenk even purchased DeLorean Motors’ belongings throughout its chapter).
It developed through the years to promote a variety of off-price merchandise, however in 2013, below newly put in CEO David Campisi, Huge Tons made an ill-advised shift to promote non-closeout objects in its shops, leaving shoppers with a complicated value expertise.
Huge Tons’ gross sales declined, notably after 2021, falling 14% in fiscal 2023 (ending February 3, 2024), 11% in 2022, and 1% in 2021. In its closing quarter earlier than declaring chapter on September 9, 2024, Huge Tons reported year-to-date gross sales by way of the second quarter had fallen by 9.2% to $2.1 billion. It additionally $570 million in maturing short-term debt.
Huge Tons chapter timeline:
- Sept. 9, 2024: Huge Tons filed for Chapter 11 chapter safety.
Supply: Kroll - Jan. 1, 2025: A chapter courtroom permitted the sale of 200‑400 Huge Tons shops and as much as two distribution facilities to Selection Wholesalers, facilitated by Gordon Brothers.
Supply: Reuters - Jan. 14, 2025: Gordon Brothers affords Huge Tons retailer leases on the market nationwide (19,000 to 55,000 sq.‑foot properties).
Supply: Gordon Brothers - Feb. 27, 2025: Ollie’s Discount Outlet Holdings, Inc. introduced its acquisition of 40 Huge Tons retailer leases from Gordon Brothers, bringing its whole of Huge Tons‑derived leases to 63.
Supply: Ollie’s Discount Outlet Holdings
Huge Tons’ restructuring amid chapter included the liquidation of many shops, creating an incredible alternative for Ollie’s Discount Outlet.
Not like Huge Tons, Ollie’s stability sheet was sturdy, with no significant long-term debt and lots of of hundreds of thousands in money, regardless of its ongoing retailer opening program. The corporate leveraged its monetary power to accumulate 63 leases on Huge Tons shops, buying 23 leases in 2024 and one other 40 leases in February 2025.
“These locations are the right size, come with favorable lease terms, are located in existing and adjacent trade areas, and have long serviced value conscious consumers,” mentioned Ollie’s CEO van der Valk on the time.
The newly acquired shops bolstered its presence inside essentially the most enticing markets. On the identical time, the everlasting closure of many Huge Tons areas supplied a tailwind, resulting in elevated foot visitors at 290 Ollie’s shops in the course of the second quarter of 2025.
The mix has accelerated Ollie’s income, with shops reopened below Ollie’s model rising quickly and same-store gross sales at present Ollie’s inside former Huge Tons markets accelerating at a faster-than-normal tempo.
General, comparable retailer gross sales at shops open not less than one 12 months rose 5% within the second quarter, “driven by an increase in transactions,” in response to Helm.
Ollie’s Military membership grows
Ollie’s shops and advertising and marketing boast a vibe much like Dealer Joe’s, with old-timey promoting encouraging a treasure-hunt mentality amongst clients trying to find “Good Stuff Cheap.”
Ollie’s Military membership totaled 15.1 million folks on the finish of fiscal 2024, up 8% 12 months over 12 months. The corporate says members account for about 80% of gross sales at its shops, which may now be present in 34 states alongside the East Coast. The common Ollie’s Military member spends 40% extra per go to than nonmembers.
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“With so many retailers closing stores or going bankrupt in the past year, there is an opportunity to gain market share through expanding our footprint, acquiring new customers and turning these customers into loyal Ollie’s Army members,” mentioned van der Valk on the Q2 earnings name.
That is already taking place. Exiting the second quarter, Ollie’s Military loyalty members totaled 16.1 million, a ten.6% improve from final 12 months.
Nevertheless it’s not solely development by way of Huge Tons’ failure that is driving outcomes. Ollie has ramped up its natural new retailer development this 12 months, opening 54 shops in the course of the first six months, which is “4x the number of stores we opened in the same period last year,” in response to van der Valk.
What’s subsequent for Ollie’s Discount Outlet
The corporate sees alternatives arising from shifting buyer habits, forcing shops to reassess their footprints. The corporate is monitoring further retailer closures and bankruptcy-related alternatives, and it plans to take care of a cautious strategy to new retailer grand openings.
General, Ollie’s exited the second quarter, throughout which it opened 29 shops, with a goal of 85 new areas this 12 months, together with the Huge Lot shops. In 2026, it expects to exceed its 10% retailer development purpose once more.
The shop closures even have one other constructive influence for Ollie’s — extra alternatives to purchase stock.
“There’s so many different sources of closeouts in any given quarter… Our model thrives on disruption,” mentioned van der Valk. “The retail bankruptcies and store closures have certainly resulted in additional buying opportunities.”
Ollie’s can also be looking for further methods to spice up visits from Ollie’s Military members. It hosted an Ollie’s Day occasion within the second quarter, providing an unique member-only purchasing night time with promotions tailor-made to members.
“The reimagined event was a huge success and exceeded all expectations. First and most importantly, we rewarded our Ollie’s Army members and acquired an abundance of new members. Second, the event was accretive to sales and earnings,” mentioned van der Valk.
The Ollie’s Days occasion added 1% to the off-price retailers’ comp retailer gross sales in Q2.
It plans the same Ollie’s Military Day with unique looking for members on Dec. 15.
And it isn’t simply that Ollie’s is successful with lower- and middle-income consumers. It’s seeing development throughout all revenue ranges, together with higher-income households, as extra clients shift their spending habits.
In the end, Ollie’s Discount Outlet believes there’s room to function 950 shops in America, offering ample alternatives for additional development.
The corporate will present an replace on its progress throughout its third quarter earnings name, scheduled for Dec. 9.
Associated: Common TJMaxx rival stumbles as buyer habits shifts
