Ollie's Bargain Outlet's Nebraska Venture: A Strategic Play in Resilient Consumer Markets

The arrival of Ollie's Bargain Outlet in Omaha, Nebraska, on July 2, 2025, marks a pivotal step in the retailer's mission to dominate underpenetrated markets amid rising inflation and economic uncertainty. This first store in the Cornhusker State not only taps into a demand for affordable essentials but also signals a bold expansion into the Midwest—a region where the company is leveraging the collapse of competitors like Big Lots to secure prime locations at advantageous terms. For investors, Ollie's (NASDAQ: OLLI) represents a compelling play on resilient consumer trends, scalable growth, and strategic first-mover advantages.

Nebraska: A Blueprint for Underpenetrated Markets

Ollie's Nebraska store, located at 72nd Street in North Omaha, has already drawn crowds eager for discounts of up to 70% on brand-name products. Early shoppers like Thelma Bennett, who waited hours for the grand opening, emphasized the store's timing: “With prices rising everywhere, this is a lifeline.” The selection—spanning housewares, electronics, and pet supplies—caters to budget-conscious families, while the former Big Lots site's prime location near Marshalls underscores Ollie's strategy of capitalizing on competitors' retreats.

The store's creation of 50–60 jobs, including roles from cashiers to managers, highlights Ollie's scalable model. With 599 stores across 33 states and over 12,000 employees, the company has proven that even modest-sized locations can generate local economic benefits while fueling national growth. Nebraska's debut positions Ollie's as the go-to destination for discount shopping, unseating rivals and attracting customers from distant markets like Kansas City.

The Midwest Play: Low-Cost Expansion and Profitability

Ollie's expansion into Nebraska is just one piece of a broader Midwest strategy. The company has acquired 63 former Big Lots leases, many at below-market rents, to rapidly scale its footprint. By repurposing these spaces—which once served similar bargain-seeking customers—Ollie's avoids costly new construction while securing locations in high-traffic areas. CFO Robert Helm noted that these leases offer “outsized profitability,” even after accounting for transition costs.

The Midwest rollout includes states like Ohio (35 new stores), Tennessee (20), and Illinois (e.g., Aurora), where Ollie's has already begun occupying repurposed sites. With plans to open 75 stores in 2025—up from 50 in 2024—the company aims to capitalize on a region where inflation-driven bargain hunting is surging.

Inflation and the Bargain Retail Boom

Rising prices have made discount retailers like Ollie's essential. The company's “real brands, real bargain prices” model aligns perfectly with a cost-conscious consumer base. Unlike Big Lots, which struggled with outdated inventory and stagnant sales, Ollie's thrives by offering a rotating stock of closeout items, creating a “treasure hunt” experience that keeps shoppers coming back.

This demand is reflected in Ollie's financials: its sales grew at a double-digit pace in 2024, outpacing competitors like Big Lots (NASDAQ: BIG), which posted declines.

Investment Thesis: A Resilient Growth Engine

Investors should view Ollie's Nebraska entry and Midwest expansion as a low-risk, high-reward opportunity. Key drivers include:
1. First-Mover Advantage: Entering states like Nebraska before competitors secures customer loyalty and market share.
2. Cost Efficiency: Acquired Big Lots leases reduce upfront capital needs, boosting margins.
3. Scalability: Each store adds jobs and local relevance, creating a flywheel effect of community support and repeat business.
4. Economic Resilience: Discount retail thrives in both inflationary and post-inflationary environments, offering steady demand.

While risks like a sudden economic rebound or overexpansion exist, Ollie's disciplined approach—focusing on regions with existing trade areas and proven demand—mitigates these concerns.

Conclusion

Ollie's Bargain Outlet's Nebraska venture is more than a store opening; it's a strategic masterclass in leveraging market gaps and economic conditions. By targeting underpenetrated regions with cost-effective real estate and a proven discount model, the company is positioning itself to capitalize on a durable consumer trend. For investors seeking exposure to a retailer with scalable growth and inflation-resistant demand, Ollie's stands out as a compelling choice.

In a landscape where affordability is non-negotiable, Ollie's is turning empty storefronts into gold mines—literally.