Ollie\'s Bargain Outlet Hldg (OLLI)

History and Background

Ollie's Bargain Outlet was founded in 1982 in Mechanicsburg, Pennsylvania. It has grown from a single store to a national chain known for selling closeout merchandise and excess inventory at discounted prices.

Core Business Areas

• Retail Operations: Ollie's operates a chain of retail stores across the United States, offering a wide range of discounted merchandise.
• Merchandise Sourcing: The company sources its products from various channels, including manufacturers, retailers, and distributors, often acquiring excess inventory or closeout items.

Leadership and Structure

The CEO of Ollie's Bargain Outlet Hldg is John Swygert. The organizational structure is typical of a retail chain, with regional and store-level management reporting to corporate headquarters.

Key Offerings

• Housewares: Includes items for the home such as cookware, appliances, and du00e9cor. Market share data is not publicly available for Ollie's specific housewares sales. Competitors include TJ Maxx (TJX), Ross Stores (ROST), and Big Lots (BIG).
• Food: Shelf-stable foods and snacks. Market share data is not publicly available for Ollie's specific food sales. Competitors include Dollar General (DG), Dollar Tree (DLTR), and grocery stores.
• Books and Stationery: Discounted books, stationery, and school supplies. Market share data is not publicly available for Ollie's specific books and stationery sales. Competitors include retailers such as Walmart (WMT) and Amazon (AMZN).
• Hardware and Automotive: Tools, hardware supplies, and automotive accessories. Market share data is not publicly available for Ollie's specific hardware and automotive sales. Competitors include Harbor Freight and auto parts retailers like AutoZone (AZO) and Advance Auto Parts (AAP).

Industry Overview

The discount retail industry is characterized by price competition, sourcing of closeout merchandise, and value-driven consumers. The industry is currently experiencing growth due to inflation and cost-conscious shoppers.

Positioning

Ollie's is positioned as a deep-discount retailer, offering a treasure hunt shopping experience and value pricing. Its competitive advantage lies in its opportunistic sourcing and cost-effective operations.

Total Addressable Market (TAM)

The total addressable market for discount retail in the US is estimated to be in the hundreds of billions of dollars. Ollie's is positioned to capture a portion of this market through store expansion and strategic sourcing.

Key Competitors

• TJX
• ROST
• DLTR
• DG
• BIG

Competitive Landscape

Ollie's competes with other discount retailers based on price, product assortment, and store location. Its treasure hunt shopping experience differentiates it from some competitors.

Historical Growth: Ollie's has demonstrated steady growth through store expansion and same-store sales increases in recent years.

Future Projections: Analyst estimates suggest continued growth driven by new store openings and comparable sales gains.

Recent Initiatives: Recent initiatives include expanding into new markets, enhancing the customer experience, and optimizing supply chain operations.

Ollie's Bargain Outlet has a solid foundation and proven business model that works well in tough economic times. Its sourcing capabilities are key to maintaining low prices. Expansion is a significant opportunity but supply chain vulnerability and competition present challenges. Maintaining its unique bargain-hunting experience is crucial for long-term success.

Data Sources:

• Company websites
• Analyst reports
• Industry publications
• SEC filings
• Market research reports

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Market share data may be estimated and may not reflect precise figures.