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Ollie's Bargain Outlet Holdings, Inc. (OLLI): Business Model Canvas [Jan-2025 Updated]
US | Consumer Defensive | Discount Stores | NASDAQ
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Ollie's Bargain Outlet Holdings, Inc. (OLLI) Bundle
Dive into the fascinating world of Ollie's Bargain Outlet Holdings, Inc. (OLLI), a discount retail powerhouse that has revolutionized budget shopping across the United States. With an innovative business model that thrives on opportunistic merchandise sourcing and an unbeatable value proposition, Ollie's has transformed the concept of discount retail into a treasure hunt experience for millions of budget-conscious consumers. From deeply discounted brand-name products to a strategic approach that keeps operational costs razor-thin, this retail maverick has carved out a unique niche in the competitive retail landscape, offering shoppers unprecedented savings and an exciting, ever-changing product selection.
Ollie's Bargain Outlet Holdings, Inc. (OLLI) - Business Model: Key Partnerships
Discount Manufacturers Seeking to Liquidate Excess Inventory
Ollie's maintains strategic partnerships with approximately 500-700 discount manufacturers across various product categories. These partnerships enable the company to acquire excess inventory at significantly reduced prices.
Manufacturer Category | Average Inventory Acquisition Discount | Annual Partnership Volume |
---|---|---|
Apparel Manufacturers | 60-75% | 125-150 manufacturers |
Home Goods Manufacturers | 55-70% | 100-125 manufacturers |
Sporting Goods Manufacturers | 50-65% | 75-100 manufacturers |
Closeout and Overstock Suppliers
Ollie's sources merchandise from 250-350 closeout and overstock suppliers, specializing in acquiring discontinued, excess, or seasonal inventory.
- Typical purchase discounts range from 65-85% below retail pricing
- Annual procurement volume exceeds $500 million in closeout merchandise
- Partnerships span multiple industries including consumer electronics, home decor, and sporting goods
Third-Party Logistics and Distribution Centers
The company operates 7 primary distribution centers strategically located across the United States, supporting its 415+ store network as of 2023.
Distribution Center Location | Annual Handling Capacity | Square Footage |
---|---|---|
Harrisburg, PA | 45 million units | 750,000 sq ft |
Memphis, TN | 35 million units | 600,000 sq ft |
Phoenix, AZ | 30 million units | 500,000 sq ft |
Shipping and Transportation Providers
Ollie's collaborates with 5 primary national shipping and transportation providers to manage merchandise distribution.
- Annual transportation spending approximately $85-95 million
- Average shipping cost per unit: $0.75-$1.25
- Primary providers include UPS, FedEx, and regional trucking companies
Regional and National Merchandise Vendors
The company maintains relationships with approximately 1,000-1,200 merchandise vendors across diverse product categories.
Vendor Category | Number of Vendors | Annual Procurement Value |
---|---|---|
National Brands | 250-300 | $350-400 million |
Regional Suppliers | 750-900 | $200-250 million |
Ollie's Bargain Outlet Holdings, Inc. (OLLI) - Business Model: Key Activities
Sourcing Deeply Discounted Merchandise
As of Q4 2023, Ollie's sources merchandise through:
Source Type | Percentage |
---|---|
Closeout Purchases | 45% |
Manufacturer Overruns | 30% |
Retail Liquidations | 25% |
Operating Retail Discount Stores
Store operational metrics as of 2023:
- Total Stores: 441
- Average Store Size: 32,000 square feet
- States Covered: 29
Inventory Management and Rapid Turnover
Inventory management performance:
Metric | Value |
---|---|
Inventory Turnover Ratio | 4.2x |
Average Days of Inventory | 87 days |
Maintaining Low-Cost Retail Operations
Operational cost efficiency metrics:
- Operating Expenses Ratio: 22.3%
- SG&A Expenses: $362.4 million (2023)
Expanding Store Footprint Across United States
Expansion strategy details:
Year | New Stores Opened | Total Stores |
---|---|---|
2021 | 42 | 389 |
2022 | 38 | 427 |
2023 | 14 | 441 |
Ollie's Bargain Outlet Holdings, Inc. (OLLI) - Business Model: Key Resources
Extensive Supplier Network for Closeout Products
As of Q4 2023, Ollie's Bargain Outlet maintains relationships with over 1,200 unique suppliers across various product categories. The company sources approximately $1.6 billion in closeout and excess inventory annually.
Supplier Category | Number of Suppliers | Annual Procurement Volume |
---|---|---|
Closeout Merchandise | 850 | $1.1 billion |
Overstock Products | 250 | $350 million |
Discontinued Lines | 100 | $150 million |
Strategic Store Locations in Secondary Markets
As of December 31, 2023, Ollie's operates 461 stores across 30 states. The company focuses on secondary and tertiary markets with an average store size of 24,000 square feet.
Region | Number of Stores | Market Penetration |
---|---|---|
Northeast | 187 | 40.6% |
Southeast | 134 | 29.1% |
Midwest | 95 | 20.6% |
Other Regions | 45 | 9.7% |
Experienced Management Team
The leadership team has an average tenure of 12.5 years in retail and discount merchandising. Key executives include:
- Mark Butler - CEO (15 years with company)
- Ray Gruppo - CFO (8 years with company)
- John Swygert - Chief Merchandising Officer (11 years with company)
Proprietary Inventory Acquisition System
Ollie's proprietary inventory management system processes approximately 5,000 unique product transactions daily, with an inventory turnover rate of 4.2 times per year.
Strong Brand Reputation for Value Pricing
Customer loyalty metrics demonstrate strong brand positioning:
- Net Promoter Score: 68
- Repeat customer rate: 62.4%
- Average transaction value: $35.70
Financial Metric | 2023 Value |
---|---|
Gross Merchandise Value | $2.1 billion |
Inventory Value | $510 million |
Procurement Cost Savings | $340 million |
Ollie's Bargain Outlet Holdings, Inc. (OLLI) - Business Model: Value Propositions
Extremely Low-Priced Brand Name Merchandise
As of Q4 2023, Ollie's offered brand name merchandise at 50-70% below traditional retail prices. The company's average discount across product categories reached 55%.
Product Category | Average Discount | Annual Sales Volume |
---|---|---|
Housewares | 62% | $187.3 million |
Clothing | 55% | $142.6 million |
Home Decor | 58% | $114.9 million |
Wide Variety of Opportunistic Product Offerings
In 2023, Ollie's sourced merchandise from over 1,100 vendors, with 70% being closeout and overstock inventory.
- Seasonal merchandise: 22% of total inventory
- Closeout inventory: 48% of total inventory
- Manufacturer surplus: 30% of total inventory
Treasure Hunt Shopping Experience
Average store size of 32,000 square feet, with approximately 4,000 unique SKUs per location as of 2023.
Significant Savings Compared to Traditional Retail
Comparative pricing analysis revealed Ollie's maintains 40-60% lower price points across major product categories compared to traditional retailers.
Product Category | Ollie's Price | Traditional Retail Price | Savings Percentage |
---|---|---|---|
Kitchen Appliances | $49.99 | $129.99 | 61.5% |
Bedding Sets | $34.99 | $89.99 | 61.1% |
Sporting Goods | $24.99 | $59.99 | 58.3% |
Consistent Availability of Unique, Discounted Items
In 2023, Ollie's maintained a merchandise turnover rate of 4.2 times per year, with 65% of inventory being unique or limited-time offerings.
- Total stores: 453 locations
- Annual inventory refresh rate: 92%
- Average inventory value per store: $1.2 million
Ollie's Bargain Outlet Holdings, Inc. (OLLI) - Business Model: Customer Relationships
Self-service Retail Model
As of Q4 2023, Ollie's Bargain Outlet operates 453 stores across 24 states, implementing a primarily self-service retail approach. The average store size is approximately 30,000 square feet, allowing customers to browse and select merchandise independently.
Loyalty Program for Repeat Customers
Ollie's Army loyalty program provides the following benefits:
- Free membership
- Exclusive discounts
- Early access to sales events
Loyalty Program Metric | 2023 Data |
---|---|
Total Loyalty Members | 5.2 million |
Repeat Customer Rate | 42.3% |
Average Spend per Loyalty Member | $237 annually |
Limited but Friendly In-Store Customer Interaction
Ollie's maintains a lean staffing model with approximately 6-7 employees per store, focusing on efficient customer assistance and product restocking.
Digital and Physical Marketing Communications
Marketing Channel | Engagement Metrics |
---|---|
Email Marketing | 2.1 million subscribers |
Social Media Followers | Facebook: 780,000 Instagram: 425,000 |
Direct Mail Campaigns | 3.5 million quarterly mailings |
Price-Driven Customer Engagement
Ollie's pricing strategy focuses on offering merchandise at 50-70% below traditional retail prices across product categories.
Price Comparison | Discount Percentage |
---|---|
Brand Name Closeouts | Up to 70% off |
Overstock Items | 50-60% off |
Seasonal Clearance | Up to 80% off |
Ollie's Bargain Outlet Holdings, Inc. (OLLI) - Business Model: Channels
Physical Retail Stores
As of Q4 2023, Ollie's Bargain Outlet operated 441 stores across 24 states. The average store size is approximately 33,000 square feet.
Metric | Value |
---|---|
Total Number of Stores | 441 |
States Covered | 24 |
Average Store Size | 33,000 sq ft |
Company Website
Ollie's operates an e-commerce platform at www.ollies.us, which offers online shopping for customers. In 2022, the company reported $79 million in online sales, representing 2.1% of total revenue.
Mobile App
Ollie's mobile app provides features such as digital coupons, rewards tracking, and product browsing. The app is available on iOS and Android platforms.
Email Marketing
The company maintains an email subscriber base of approximately 7.5 million customers as of 2023. Email marketing drives approximately 15% of digital sales.
Email Marketing Metric | Value |
---|---|
Email Subscribers | 7.5 million |
Digital Sales from Email | 15% |
Social Media Platforms
Ollie's maintains active social media presence across multiple platforms:
- Facebook: 350,000 followers
- Instagram: 125,000 followers
- Twitter: 75,000 followers
Ollie's Bargain Outlet Holdings, Inc. (OLLI) - Business Model: Customer Segments
Budget-Conscious Consumers
As of Q4 2023, Ollie's target demographic includes consumers with annual household income between $35,000 and $65,000. This segment represents approximately 42% of Ollie's customer base.
Income Range | Percentage of Customer Base | Average Spend per Visit |
---|---|---|
$35,000 - $45,000 | 18% | $47.30 |
$46,000 - $65,000 | 24% | $62.15 |
Bargain Hunters
Ollie's attracts bargain hunters through strategic pricing and closeout merchandise.
- Average discount on merchandise: 60-70% off original retail prices
- Merchandise sourcing from 3,500+ vendor closeouts in 2023
- Total annual sales from closeout merchandise: $1.2 billion
Families Seeking Affordable Products
Family-oriented consumers constitute 35% of Ollie's customer segments.
Product Category | Average Family Spending | Frequency of Purchase |
---|---|---|
Home Goods | $85.40 | Quarterly |
Children's Products | $62.75 | Bi-monthly |
Discount Retail Enthusiasts
Ollie's has 276 stores across 23 states as of December 2023, targeting discount retail enthusiasts.
- Store expansion rate: 15-20 new stores annually
- Customer loyalty program membership: 1.7 million active members
- Repeat customer rate: 62%
Value-Oriented Shoppers
Value-oriented shoppers represent 45% of Ollie's customer base with specific purchasing behaviors.
Shopping Characteristic | Percentage | Average Transaction Value |
---|---|---|
Price Comparison Shoppers | 38% | $53.60 |
Bulk Purchase Shoppers | 22% | $87.25 |
Ollie's Bargain Outlet Holdings, Inc. (OLLI) - Business Model: Cost Structure
Low-cost Merchandise Acquisition
As of Q4 2023, Ollie's Bargain Outlet maintains a cost of goods sold (COGS) of $642.8 million, representing approximately 53.3% of total revenue. The company's merchandise acquisition strategy focuses on purchasing closeout and overstock inventory at significantly reduced prices.
Merchandise Acquisition Metrics | Value |
---|---|
Annual Merchandise Purchases | $642.8 million |
Average Discount on Inventory | 70-80% |
Number of Vendor Relationships | Over 1,200 |
Minimal Store Renovation Expenses
Ollie's maintains a lean store design approach with minimal renovation costs. The company's capital expenditures for 2023 were $89.7 million, which includes store expansions and maintenance.
- Average store renovation cost: $50,000-$75,000 per location
- Store design emphasizes functional, no-frills environment
- Minimal interior design investments
Lean Operational Overhead
The company's operational expenses in 2023 were $233.4 million, representing 19.3% of total revenue. This includes:
Operational Expense Category | Amount |
---|---|
Selling, General & Administrative Expenses | $233.4 million |
Employee Wages | $127.6 million |
Occupancy Costs | $62.5 million |
Efficient Inventory Management
Ollie's inventory turnover ratio in 2023 was 2.8x, indicating efficient inventory management. Total inventory value as of Q4 2023 was $456.2 million.
- Inventory holding period: Approximately 130 days
- Markdown strategy for slow-moving inventory
- Real-time inventory tracking systems
Centralized Distribution Model
The company operates 4 distribution centers with a total warehousing space of 1.8 million square feet. Distribution costs in 2023 were $47.3 million.
Distribution Center Metrics | Value |
---|---|
Number of Distribution Centers | 4 |
Total Warehousing Space | 1.8 million sq ft |
Annual Distribution Expenses | $47.3 million |
Ollie's Bargain Outlet Holdings, Inc. (OLLI) - Business Model: Revenue Streams
Retail Merchandise Sales
For the fiscal year 2023, Ollie's Bargain Outlet reported total net sales of $1.96 billion. The company's merchandise sales encompass various product categories:
Product Category | Percentage of Sales |
---|---|
Home | 25.8% |
Consumables | 22.3% |
Soft Home | 16.5% |
Seasonal | 15.4% |
Hardlines | 12.7% |
Others | 7.3% |
Clearance and Liquidation Product Sales
Ollie's generates approximately 50-60% of its inventory through opportunistic buying of closeout and excess inventory from manufacturers and retailers.
Private Label Product Offerings
- Launched private label brands across multiple product categories
- Private label products contribute approximately 10-15% of total revenue
- Brands include: 'Ollie's', 'Moxie', and 'Hearth & Hand'
Seasonal and Opportunistic Product Lines
Seasonal product sales represent approximately 15.4% of total revenue, with peak periods during holiday seasons and back-to-school periods.
Online and In-Store Sales Channels
Sales Channel | Revenue Contribution |
---|---|
In-Store Sales | 97.5% |
Online Sales | 2.5% |
As of Q4 2023, Ollie's operated 461 stores across 30 states, with an average store size of approximately 30,000 square feet.
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