Ollie’s Bargain Outlet is proving why it remains a heavyweight in the liquidation retail space. The Q3 2024 earnings report showed an 8% rise in net sales to $517 million. However, the quarter wasn’t without its challenges—comparable store sales dipped slightly (-0.5%) due to factors like hurricane disruptions, warm weather, and fierce competition from Big Lots’ liquidation events. Despite these headwinds, Ollie’s improved its gross margin by 100 basis points to 41.4%, driven by lower supply chain costs.

Notably, Ollie’s broke records by opening 24 new stores in Q3, closing the quarter with 546 locations across 31 states. With plans to open 56 stores in 2025, they’re leveraging real estate opportunities created by competitor disruptions, such as acquiring Big Lots and 99 Cents Only leases.‍

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Industry Ripples: What This Means for Off Price Retail

As competitors in off price and traditional retail alike face bankruptcy and store closures, Ollie’s is consolidating its position as the go-to buyer for excess inventory. They’re doubling down on their ability to execute large opportunistic buys through direct supplier relationships, a capability that smaller or less stable players simply can’t match. This positions Ollie’s as a preferred partner for manufacturers grappling with mounting excess inventory amid ongoing supply chain volatility.

Their focus on food, candy, furniture, and household cleaning items signals a shift toward categories that resonate with value-conscious shoppers, particularly younger (18-45) and higher-income customers. This evolution signals opportunities for CPG brands to reimagine their relationship to partners in the closeout channel, where value-conscious shoppers across all demographics are increasingly influential. 

As Ollie's CEO, John Swygert, puts it:

“We sell good stuff cheap, and we’ve been in the closeout business for over 42 years. Our value proposition has always been about real brands and real bargains. With over 540 stores in 31 states, we’re the largest buyer of closeouts and excess inventory, and our size, scale, and strong financial position give us unmatched advantages in the industry.”

Impact on Spoiler Alert’s CPG Manufacturing Partners

Here’s the key takeaway: Ollie’s isn’t just growing—it’s redefining the off price retail landscape. Their strategic relationships with manufacturers are a wake-up call for brands still relying on traditional closeout methods, such as broad auctions, fragmented liquidator partnerships, or reactive, ad hoc strategies. The days of piecemeal deals with inconsistent partners are fading. Now, manufacturers need partners who can handle scale, move product efficiently, and protect brand equity.

In related news, Ollie’s also announced leadership changes, with Erik van der Valk set to assume the CEO role in 2025. This leadership transition occurs as the company consolidates its position as a key player in the liquidation landscape. For a deeper dive into Ollie’s growth trajectory and how it’s reshaping the industry, check out their full Q3 2024 earnings report here.