Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
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r e t a i l i n g t O d a y More for less Ollie's bargain Outlet is adding stOres as swiftly as it mOves prOduct O By Beth Mattson-Teig llie's Bargain Outlet offers more than just deep discounts on name-brand merchandise. the Harrisburg, Pa.–based chain relies on an ever-changing treasure trove of inventory as a means to lure back customers who love the thrill of the hunt. "the consumer has come to know that if Ollie's has it, it's a deal," said Ollie's CeO and co-founder Mark Butler. "that's why we have it. and by the way, if you see it, you better buy, because when it's gone, it's gone. that helps to fuel the excitement with the customer." For the past 31 years, Ollie's strategy has been simple. the retailer stocks brand-name inventory in a warehouse-style store at closeout prices, using opportunistic buying from overstocks, liquidation sales and refurbished packaging to deliver steep discounts — 25, 50, even 70 percent. Despite a proliferation of retailers looking to woo the price-conscious during these times of economic difficulty for many consumers, Ollie's has continued to thrive. since its first store opened in 1982, the company has been expanding its market share and increasing its store base at a pace of 15 to 20 percent per year. Ollie's opened 24 stores last year and currently operates 154 stores in the u.s., and its plans for this year are for a rollout of about 30. Of course, Ollie's does face competition from the discount stores, the wholesale clubs and the dollar stores, and also from the home-improvement chains. But Ollie's 14 SC t / J a n u a r y 2 0 1 4 does not generally compete head-tohead on price for specific merchandise or basket items. "at Walmart you can go in and get a roll of paper towels. at Ollie's, you never know what you're going to find, because we don't know what we're going to get," said Butler. "that's what makes it so much fun and differentiates us." the company's biggest direct competitor is Big lots, which operates on a similar discount format. But Ollie's emphasizes a slightly different merchandise mix, including books and carpeting, while Big lots tends to carry more