"A comic picture of their founder looks weird, but people seem to like it," said Neil Saunders, Managing Director at GlobalData Retail.
On Friday, Ollie & # 39; s said retail store sales rose 7.1% a year ago and raised its guidelines.
But is America ready for another Ollie's bargain?
Space heaters on garden chairs
Ollie is currently liquidating Toys "R" Us as capital.
It has purchased 12 former Toys "R" Us websites and leases another six. In November Ollie's 300th Store opened at an old Toys "R" Us location in Maryland.
"These great sites have shaken us up," said Ollie Mark Butler co-founder and CEO last month to analysts. Butler declined to comment on this story via a spokesman.
Entering Toys "R" Us spots is part of Ollie's plan to enter states such as Texas, Louisiana and Oklahoma. It is planned to open up to 650 new stores across the country.
Ollie is not the only discount chain that is up to date.
"Products are much more versatile than a TJX or Ross," Saunders said. "It's more like a dollar store with many different categories."
Ollie's sells large brands such as Kellogg, Hasbro and Yankee Candle, as well as its own brands such as Sarasota Breeze and Steelton Tools. Up to 70% less than department stores and 50% less than Walmart.
The company has a 16-member team that has searched the market for overcrowded corporate baseball gloves and garden tools, canceled or delayed orders for crockery and cutlery, and stopped producing potato chips and cat litter.
For example, when the summer comes to an end and the manufacturers have beach chairs and umbrellas that they need to unload quickly, Ollie's will buy them and keep them until next spring.
"It will be last year's model, but it will be extremely discounted compared to everything out there," said Scot Ciccarelli, analyst at RBC Capital Markets.
Ollie & # 39; s Benefits from Market Disruptions
"The Few, the Fair, the Proud"  Ollie's branding quirky.
In shops and advertisements, "Ollie" is caricatured as Sherlock Holmes looking through a microscope for offers or as a general of the army in a helmet and tired.
"Sign up today at Ollie & # 39; s Army "and" Become one of the we cheap, proud "are some slogans that the company uses to recruit members of the" Ollie's Army ".
Ollie uses humor to stand out. He bets on humorous shop signs and marketing to get customers to "giggle a bit".
The company is trying to make impulse purchases by creating a" unique, entertaining and captivating treasure hunt "in stores selling unexpected items." Ollie when it's gone, it's gone "
"You go specifically for the garden furniture, and then comes the treasure hunt aspect," said Ciccarelli. "Oh, they have coffee pots."
But Ollie believes his business model protects against online Competition
"It's almost impossible to duplicate what we do online in stores," said Chief Executive Officer Butler last year, arguing that Ollie's businesses are moving into new products almost every day , "Provide us with tremendous isolation with ecommerce."
Ollie faces a series of obstacles. 19659002] It's important to recruit loyalty members of Ollie, who make up 70% of the company's revenue. Ollie's has nearly nine million loyalty members.
It will be difficult to squeeze more dollars out of current members and put new recruits into Ollie's army.
"The market for value and off-price is saturated," said Saunders. When Ollie's expanding into new states, it will face more intense competition.
Companies like TJX and Ross are keen to sell more housewares and cookware, which could endanger Ollie's strength in these areas. HomeGoods owned by TJX grew 7% last quarter.
At Ollie's, too, employee wages are under pressure, particularly as a result of moving to countries with higher wages and increased shipping costs. The company is more sensitive to these factors than larger competitors. In December, Ollie's shares fell more than 15% as quarterly gross margins sank.
When the economy slows, customers can withdraw their spending at Ollie's for their more expensive products.
Although consumers usually buy more in recessions, Ollie's will not pick up much new business from cost-conscious shoppers moving to cheaper deals, Saunders said. Larger competitors such as TJX and Burlington will be able to attract customers.
"TJX has more customer footprint," he added. "Ollie's a bit more exposed by hard-pressed buyers."
At the moment, however, Ollie will find goods available in the near-sales market for sale to customers.
"We have the opportunity to jump on it," said Butler.