Ollie’s Bargain Outlet Holdings continues its expansion push with the announcement it plans to debut five new stores before the end of September, bringing its total to 15 for the month.
The news follows a statement from Ollie’s President and CEO Eric van der Valk that store expansion has a central place in the company’s go-forward strategy.
The September action closes a busy summer for Ollie’s with store openings. The company debuted five stores in August, 10 in July and three in June.
On September 24, Ollie’s will open stores in Maplewood, MN, and Jasper, IN, a day after its September 23 openings in Tallahassee, FL, Moundsville, WV, and Morgan City, LA. The Maplewood and Jasper stores opened in former Joann locations, while the Moundsville store opened in a former Big Lots space, and the Tallahassee store opened in a former Bealls location, the company noted.
Earlier in September, the company opened 10 stores: Janesville, WI; Oregon, OH; Waynesburg, PA; Riverside, OH; Stevens Point, WI; Highland Springs, VA; Pikeville, KY; Murfreesboro, TN; Norwich, NY; and Carlsbad, NM.
In a recent second-quarter conference call, van der Valk said the new store openings are part of Ollie’s ongoing effort to reach new potential customers while consistently engaging those it already serves.
“We are all about growth, and our growth starts with opening new stores and acquiring new customers,” he said. “We opened 50 new stores during the second quarter and 42 during the first half of the year, more than halfway to our full-year target of 75. We are investing in our loyal customer base through events and programs that strengthen engagement and deepen our connection with customers. During the quarter, we held another successful Ollie’s Army Night and wrapped our annual Ollie Days events around our country’s 250th birthday celebration. Despite some weather-related challenges, both events drove even stronger customer acquisition and engagement than the year before.”
Ollie’s also is working to build its loyalty program, and the company reported it adjusted merchandising to effectively serve consumers at a time when lower-income shoppers are more need-driven in their purchasing and higher-income shoppers are trading down as they focus on value.
“Ollie’s Army members increased 13% versus last year, and we ended the period with over 18 million bargainers,” van der Valk said. “At the same time, we are managing our assortment and floor space allocation to better align with today’s customer while driving more value and newness. We are expanding categories with a strong product pipeline and white space in the market. Protein and energy products, beverage, seasonal decor, living room furniture, as well as decorative pillows were great examples of this. Most importantly, we are doing this through a disciplined test and learn approach that allows us to move quickly, make better merchandising decisions, improve the customer experience, and increase sales productivity.”
