Why a wacky discount store is buying up the remains of Toys 'R' Us

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(CNN) -- You may have never heard of Ollie's Bargain Outlet. But this eccentric discount chain wants to open hundreds of new stores across the country.

Toys "R" Us, Photo Date: 4/19/14 / Photo: Mike Mozart / CC BY 2.0 / (MGN)

Ollie's is one of the wackiest stores around. Its logo is a caricature of founder Oliver "Ollie" Rosenberg with a goofy mustache and buck teeth. Ollie's boasts that it has "semi-lovely" stores. It doesn't sell online. And it pokes fun at itself to win over customers.

"A cartoon picture of their founder looks odd, but people seem to like it," said Neil Saunders, managing director at GlobalData Retail.

Ollie's stock (OLLI) has nearly quadrupled since it went public in 2015. The company has posted 18 straight quarters of comparable store sales growth. Profit has more than tripled since the IPO.

On Friday, Ollie's said that store sales during the holidays increased 7.1% from a year ago and raised its guidance.

But is America ready for more Ollie's Bargain Outlets?

Ollie's is currently capitalizing on Toys "R" Us' liquidation.

It has bought 12 former Toys "R" Us sites and is leasing another six. In November, Ollie's opened its 300th store at an old Toys "R" Us location in Maryland.

"These great sites set us up," Ollie's co-founder and CEO Mark Butler told analysts last month. Butler declined to comment for this story through a spokesperson.



 
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