Ollie’s Bargain Outlet is making a significant move in the Texas retail landscape with the announcement of the grand openings of 10 new stores. These locations, previously occupied by 99 Cents Only Stores, promise to introduce even more brand name bargains to the vibrant markets of Dallas, Houston, McAllen, and San Antonio. This expansion is not just a strategic business decision; it is a response to consumer demand for affordable shopping options.
In May, Ollie’s finalized an asset purchase agreement to acquire 11 former 99 Cents Only Stores locations across Texas, investing approximately $14.6 million in cash. The acquisition occurred through an auction process linked to the bankruptcy of 99 Cents Only Stores. During this complex transition, Dollar Tree, Inc. also gained rights to 170 of these 99 Cents Only Stores across various southwestern states.
John Swygert, CEO of Ollie’s Bargain Outlet, expressed enthusiasm about this expansion, stating, “We are incredibly excited to open 10 more stores in the great state of Texas where the folks have been so good to us. With the closing of 99 Cents Only Stores throughout the state, we’re thrilled to provide shoppers in the Houston, Dallas, San Antonio, and McAllen areas with a treasure hunt experience where they can find a huge selection of brand name bargains at prices that won’t break the bank!”
The demand for discount retailers remains strong. Ollie’s latest financial report shows impressive results, highlighting the appeal of low-cost shopping. For the second quarter ending August 3, net sales rose by 12.4% to reach $578.4 million, compared to $514.5 million in the same period a year prior. Notably, this growth stems from not only new store openings but also a robust 5.8% increase in comparable store sales.
Profit margins for Ollie’s also reflect this positive trend. Gross profit increased by 11.4%, amounting to $219 million, while adjusted EBITDA climbed 16.4% to $74.5 million. With an adjusted EBITDA margin reaching 12.9%, Ollie’s showcases its effective business model that appeals to cost-conscious consumers.
Ollie’s Bargain Outlet, based in Harrisburg, Pennsylvania, has established itself as America’s largest retailer of closeout merchandise and excess inventory. The retailer offers a diverse array of brand-name products across various departments, including housewares, food, stationery, and health and beauty aids. With a current operational footprint of 542 stores across 31 states and a workforce exceeding 10,000 employees, Ollie’s demonstrates its commitment to providing affordable prices without compromising quality.
This strategic expansion in Texas not only aims to fill the gap left by the closing of 99 Cents Only Stores but diversifies consumer choices in the state. As discounts attract more shoppers, retail experts predict that Ollie’s will likely boost local economies by creating jobs and encouraging consumer spending.
With the discount store segment experiencing dynamic growth, Ollie’s decision could mark the beginning of a broader shift within the retail industry. As economic pressures persist, the importance of affordable shopping options has never been more crucial. Ollie’s is well-positioned to capture this market demand, making its move an astute reinforcement of its brand identity—a treasure hunt for discounts that consumers seek.
The influx of new stores in Texas sends a clear message: discount retailing is thriving. With Ollie’s ambitious plans, the store opens a chapter that not only celebrates bargains but also prioritizes community accessibility to essential goods at unbeatable prices.
In conclusion, as the retail landscape continues to evolve, Ollie’s Bargain Outlet is affirming its role as a key player in the discount sector. The company’s focus on providing value while meeting consumer needs sets a positive trajectory for future growth, especially in regions like Texas where demand for budget-friendly shopping options remains high.
