Ollie’s Bargain Outlet Acquires Seven Big Lots Store Leases
Ollie’s Bargain Outlet Expands with Former Big Lots Stores
Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) has made a significant move by acquiring seven former store leases from Big Lots, Inc. This acquisition stems from a bankruptcy auction that involved the closure of multiple Big Lots stores. Of the seven stores purchased, six have successfully passed the sale hearing phase and received the go-ahead from the United States Bankruptcy Court. The last store awaits final approval, but the anticipation surrounding these acquisitions is palpable.
CEO's Perspective on the Acquisition
John Swygert, the Chief Executive Officer of Ollie’s, expressed his enthusiasm for the newly acquired locations. According to Swygert, the decision to acquire these stores was strategic, as they are appropriately sized and located in desirable trade areas. He emphasized that these locations have been serving value-conscious customers for years, making them a perfect fit for Ollie’s roster of offerings.
Growth Potential in the Midwest
The Midwestern United States is seen as a fertile ground for expansion, especially with Ollie’s newly built distribution center situated in the region. The acquisition of Big Lots stores aligns with Ollie’s plan to tap into this market's growth potential, enabling them to enrich their service to loyal customers in that area.
Restructuring Store Openings for New Acquisitions
Mr. Swygert also highlighted a strategic approach to integrating these stores into Ollie’s existing framework. Similar to their recent acquisition of 99 Cents Only stores, Ollie’s intends to prioritize these new locations. This will involve adjusting the timeline for other planned openings to focus resources where they will generate the highest productivity, thus managing pre-opening costs effectively.
Ollie’s Commitment to Growth
As part of their ongoing growth strategy, Ollie’s has plans in place to inaugurate 50 new stores in the upcoming fiscal year while managing two anticipated closures. The assessment of the newly acquired Big Lots stores will significantly influence future store openings and their strategic cadence, ensuring that Ollie’s continues to expand intelligently.
The Ollie’s Advantage
Ollie’s Bargain Outlet is known as America’s largest retailer of closeout merchandise and excess inventory, providing exceptional value with brand-name products across various categories. With over 540 stores operating in 31 states, Ollie’s is committed to delivering real bargains to its customers.
Diverse Offerings
The stores offer a wide range of products, including housewares, food, toys, health and beauty aids, and more. This diverse catalog ensures that customers can reap affordable deals while shopping in-store.
Investor and Media Relations
As Ollie’s continues to grow and evolve, they maintain an open channel for communication. For investor inquiries, John Rouleau is the point of contact, while media inquiries can be directed to Tom Kuypers, Senior Vice President of Marketing and Advertising. Their commitment to transparency is evident as they engage with stakeholders about the company's direction and performance.
Frequently Asked Questions
What motivated Ollie’s to acquire former Big Lots stores?
The acquisition allows Ollie’s to expand its footprint in strategic locations that have served value-conscious customers effectively.
How many Big Lots stores did Ollie’s acquire?
Ollie’s acquired seven former Big Lots store leases as part of a bankruptcy auction process.
What are Ollie’s future plans regarding store openings?
Ollie’s plans to open 50 new stores while closely evaluating the impact of new acquisitions on expansion strategies.
Who can be contacted for investor inquiries at Ollie’s?
Investor inquiries can be directed to John Rouleau, who handles investor relations for the company.
How does Ollie’s ensure value for customers?
Ollie’s provides significant savings through its closeout merchandise strategy, offering brand-name products at lower prices across a wide variety of categories.
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