The Discount Retail Store That's Taking Over Where Big Lots Left Off

In September 2024, discount retailer Big Lots filed for Chapter 11 bankruptcy protection. This move was hardly a surprise to fans of the discount emporium, which closed nearly 300 of its 1,400-plus stores in the months preceding the bankruptcy declaration. Since then, bad news has continues to filter in, culminating with the (semi-erroneous) announcement that Big Lots is going out of business entirely and shuttering all stores.

For readers that may not be familiar with Big Lots, the chain sells discounted overstock and closeout merchandise that other more conventional retailers wish to unload. The company's website boasts that "each trip feels like a treasure hunt." The description continues, "Whether looking for furniture and décor or seasonal, food and pantry essentials, shoppers can find it at Big Lots for prices that other stores can't beat."

Big Lots shoppers can take small solace, however. That's because the dire news of all stores closing appears to be premature. Details are somewhat murky, but as of February 2025, it appears that an 11th-hour agreement was struck with investment firm Gordon Brothers to purchase between 200 and 400 locations and continue to operate them under the Big Lots name. Nonetheless, it's clear that a significant majority of Big Lots stores will cease to exist. And another discounter called Ollie's Bargain Outlet has its eye on filling that void.

In contrast to Big Lots' decline, Ollie's Bargain Outlet recently announced the opening of multiple new stores in addition to its 565 existing locations. Ironically, according to The U.S. Sun, 15 of these new locations were formerly occupied by Big Lots including four in the state of Wisconsin alone. However, square footage is probably the only thing that Ollie's Bargain Outlet is cribbing from Big Lots.

Ollie's Bargain Outlet opened its first location way back in 1982 and although its business model is nearly identical to competitor Big Lots, Ollie's clearly has its own identity. In particular, the cartoon face of brand co-founder Ollie Rosenberg can be found pasted everywhere in stores and online. And by the way, in-store is the only way to shop Ollie's. Though the company has an informational website, consumers can't actually purchase anything there for delivery.

In spite of its old-school business model, Ollie's is not only surviving, but thriving. Interested investors will note that its stock is publicly traded under the ticker symbol "OLLI." Since its initial public offering (IPO) in mid-2015, Ollie's stock has behaved more like a tech disruptor such as Nvidia than a ho-hum retailer. Since that fateful IPO in 2015, the share prices soared from $16 to an all-time high closing price of $119.80 on December 26, 2024 — though shares have sagged slightly so far in 2025.

So why is Ollie's Bargain Outlet expanding while Big Lots failed? Clearly, the two retailers share a similar formula but some consumers note that Big Lots had grown more mainstream over time. Per The U.S. Sun, one user on the "Retail Dead or Alive" Facebook page mentions, "I think Big Lots got too big in order to be able to really provide the treasure hunt appeal it had many years ago."

In a recent earning call, Ollie's CEO John Swygert stated, "We are, by far, the largest buyer of closeout products ... As a result, our purchasing power is growing, and we are becoming more and more meaningful to our vendor partners." For cash-strapped consumers, that economy-of-scale translates into a 20% to 70% discount compared to more standard grocery and department stores.

Just don't expect to find the same item twice. If you like that toothpaste or laundry detergent (by the way, you should also consider buying certain bathroom items at the dollar store), you'll want to stock up right away. That's because part of Ollie's strategy for success is celebrating inconsistency on its shelves in exchange for a dual mandate of high profit margins and lower prices for consumers. Recently, a company executive was observed passing out free Halloween candy inside one Ollie's store. Except, of course, it was Valentine's Day. RIP Big Lots.