Ollie’s Bargain Outlet, which registered the claim of “good stuff cheap,” sees Northeast Florida as up to a four-store market.
The Pennsylvania-based chain will open its first Jacksonville store, possibly by the end of June, in the former Babies “R” Us space in the Regency Park Shopping Center in Arlington.
Real Estate Vice President Jerry Altland said another one to three stores could open next year throughout the metropolitan area.
“We’re looking at all the sides — east, west, north and south,” he said.
At 45 to 55 full- and part-time employees at each location, that means a potential area workforce of 180 to 220 people.
It also represents up to a $4 million investment. Ollie’s says its initial average cash investment is $1 million per store, which includes store fixtures and equipment, inventory and pre-opening expenses.
In addition, Ollie’s will affect retail occupancy rates because it backfills store space that other tenants have vacated. Altland said it takes second- and third-generation buildings.
Its first area store will be in 40,150 square feet at the end of the Regency Park Shopping Center next to American Signature Furniture. Landlord Brixmor Property Group said the lease boosts occupancy to 70 percent.
The city approved a $150,000 build-out by Five D Contractors Inc. at the 9400 Atlantic Blvd. center.
Altland said the average store is 33,500 square feet, although some, like at Regency Park, are larger. He didn’t know how large the next Jacksonville area stores might be.
The Waycross, Ga., store is the closest to Jacksonville. Altland said Northeast Florida is a logical expansion step.
“It makes sense for us coming down from Georgia,” Altland said.
He said Ollie’s has been looking at Jacksonville for a year and a half. A real estate director said in January 2015 that Ollie’s had an “imminent” lease for 30,000 square feet in the Regency area, but that didn’t take place.
Altland said only that the site didn’t work out.
Ollie’s is a bargain outlet and discount store, which Altland said sells merchandise up to 70 percent “off the fancy stores.”
He considers Ollie’s a treasure hunt. “If you see it, you’d better buy it. You might not see it again.”
Ollie’s buys closeouts, excess inventory, salvage merchandise and liquidations, with a broad selection of brand-name merchandise.
The olliesbargainoutlet.com site shows stores comprise 15 departments, such as home improvement and hardware, flooring, health and beauty supplies, electronics, toys and pet supplies.
It carries seasonal items, such as summer furniture and Christmas decorations.
Its April 14 flier promotes deals on Weed & Feed, Slim Fast, Black & Decker, Williams-Sonoma cookbooks and other brand-name goods.
Its loyalty-club members are called “Ollie’s Army.”
The first Ollie’s opened in 1982 in Pennsylvania. One of its four founding fathers was Oliver “Ollie” Rosenberg.
Based in Harrisburg, Pa., Ollie’s Bargain Outlet Holdings Inc. went public in July 2015 and is on an expansion path.
It now has 207 stores in 17 states in the Eastern U.S. Its two distribution centers are in York, Penn., and in Commerce, Ga., near Athens.
The first Florida store will open in Orlando on May 4.
Sales rose 19.5 percent to $762.4 million in the year ended Jan. 30, while net income rose 33 percent to almost $36 million.
Ollie’s expansion into Jacksonville is part of what it sees as the opportunity for 950 stores nationwide, according to its investor presentation in April.
It expects to add 28-32 stores this year, according to that presentation. Altland expects to open six to eight stores in Florida this year.
Ollie’s says it targets new-store sales of $3.7 million.
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