Ollie’s Bargain Outlet is focused on creating value. But even though it’s a discount retailer, it’s thinking not just about financial value but also experiential value. That means providing customers with a treasure-hunt experience that gives them access to some of the best products from the best brands.
Across its 546 stores in the U.S., Ollie’s offers close-out merchandise from the world’s most reputable brands at 70% off retail price. With the tagline, “Good stuff cheap,” “We believe we’re selling highly branded products at very deep discounts, and our customers have come to love us for that,” said Tom Kuypers, Ollie’s SVP of Marketing in an interview with Retail TouchPoints. “Whether it’s in times of inflation or when the economy is doing well, everybody wants to get the best deal possible.”
However, the retailer’s new branded credit card is bringing value creation to the next level, thereby boosting new customer acquisition and retention rates.
Using Credit to Drive Conversion
The Ollie’s Credit Card is an extension of the retailer’s broader loyalty program, called Ollie’s Army. In addition to receiving the core benefits of the loyalty program, cardmembers can earn points wherever and whenever they make a purchase using the Ollie’s Credit Card, which is anywhere Visa cards are accepted. Additionally, and perhaps more importantly, the card is accessible to a broader customer base, including those with lower credit scores, so they can easily purchase high-ticket items such as mattresses, air conditioners and other electronics, boosting overall conversion rates and basket sizes.
“We wanted the Ollie’s Credit Card to be packed with value for our customers and be so much more than the typical retail store card,” Kuypers explained. “I’m proud to say that this card has the right features and functionality, an easy digital application and industry-high approvals, and no fees.”
Ollie’s worked with Sunbit to launch the card within months — and without any POS integration requirements. Sunbit’s team handles the deployment, support, training and customer care tied to the card, according to Kuypers, “which reduces the potential complexity of the rollout and saves significant time and money. Our teams will keep doing what they do best, serving our customers.”
In previous roles at companies like Bed Bath & Beyond, Kuypers helped launch several branded credit cards, and he found that Sunbit brings “a lot more value to the table,” he said. “We can go and approve people at a [lower] FICO score,” which allows the retailer to offer credit to a larger pool of customers. “Our approval rates are exceptionally high, which was important to us. We didn’t want to turn a lot of customers down.”
Ollie’s is taking a phased approach to rolling out the credit card in stores. The process launched in August 2024, and in early October, the company took a brief hiatus “to regroup and see how the first phase of the launch went so we could come back and launch another group of stores,” Kuypers said. “Our process was launching slow and bringing it to market so we could understand customer value.”
It is still early days for the credit card program, so Kuypers didn’t share any firm metrics of success just yet. However, “we believe we’ll see a higher average transaction, and we would like to see more frequency from the customer, a higher ticket and higher frequency,” he said “Once we see that, we’ll continue to build the program from there.”
Bolstering Ollie’s Army
Kuypers believes that marketing in retail is relatively simple and boils down to two main goals: creating new customers and bringing them back to buy again. The Ollie’s Army loyalty program was designed to drive the retention element on a more regular basis.
With nearly 15 million members, Ollie’s Army has three distinct tiers: 1 Star General, 2 Star General and 3 Star General, all based on the amount of money a customer spends. Like many retail loyalty programs, Ollie’s Army offers one point for each dollar spent. As customers move up the ranks, they see more benefits, from steeper discounts to exclusive deals and access to Ollie’s Army Night, an annual members-only shopping event. Once program members hit 250 points, they receive a 10% discount reward certificate redeemable at any Ollie’s store.
The Ollie’s team is focused on creating “more stickiness with the customer, so once you come into Ollie’s and experience the value, you join the program so we can continue to offer you more value,” Kuypers explained. That means exploring more ways to add value to the program.
When customers sign up for the Ollie’s Credit Card, they immediately receive $10 off their first purchase in the form of a statement credit. Cardmembers get additional “accelerator points” if they’re members of Ollie’s Army, so they earn 50% more points for every dollar spent. Additionally, cardmembers earn a point for every $2 spent outside of Ollie’s.
Building the Value Story
By mid-2025, all Ollie’s stores are expected to have the card implemented, which will allow the retailer’s marketing team to more extensively communicate the value the credit card is providing to customers.
“Value is different for different people, but our version of value is bringing products at discount prices,” Kuypers said. “Regardless of how we acquire them, we believe we’re selling our products at prices that are lower than anyone else in the marketplace. That’s an amazing place for a marketer to come from. I know that the claims we’re making are real and that we are offering great value to our customers every day, and our loyalty program obviously enhances that value.”
To create new customers, Ollie’s will continue to leverage print, sending preapproval mailers, and enhance its digital marketing, especially as it aims to target younger and more affluent customers. “They’re a little different than our primary core, but from the messaging perspective, we’ve continued to home in on value and continue to do exactly what we’ve always done,” Kuypers said. “It’ll be a holistic, multi-touch marketing program once we’re fully rolled out.”
