Mark Butler, one of the founding fathers of Ollie’s Bargain Outlet who led the quirky discount retail chain through a period of rapid expansion, died unexpectedly Sunday at the age of 61, the Dauphin County company announced Monday morning.
“Mark was an exceptional entrepreneur, merchant, leader, philanthropist, friend and family man,” said Richard Zannino, board member of Ollie’s Bargain Outlet Holdings Inc.
The company, which has three stores in the Lehigh Valley area, said Butler died while spending the Thanksgiving holiday weekend with his family. Effective immediately, the board has named John Swygert, a 15-year Ollie’s executive, as interim president and CEO.
As the story goes, Butler along with Mort Bernstein, Oliver “Ollie” Rosenberg and Harry Coverman founded Ollie’s Bargain Outlet on the idea that “everyone in America loves a bargain.” The founders opened their first store in Mechanicsburg on July 29, 1982. The company said Butler helped ring in the first sale at Ollie’s, which opened its second store later that year in Harrisburg, followed by its third location in 1985 in York.
When Butler took over as president and CEO in 2003 — after Bernstein stepped down from those roles — Ollie’s operated 28 stores in three states. In 2011, Butler and Ollie’s opened the chain’s 100th store in West Virginia and a distribution center in York. Three years later, the chain’s second distribution center opened in Atlanta, which set Ollie’s up for expansion in the Southeast.
In mid-2015, Ollie’s became a public company, with Butler ringing the Nasdaq opening bell July 16. In its initial public offering, Ollie’s raised more than $150 million, funds it used to pay down debt and rapidly expand — its 300th store opened in November 2018 in Maryland.
Just how fast has Ollie’s grown, even as the retail world has rapidly changed? The retailer known for “good stuff cheap” grew its store base from 176 in its 2014 fiscal year to 303 by the end of 2018 fiscal year, with net sales increasing from $638 million to $1.24 billion during that stretch, according to Ollie’s annual report. Comparable store sales, a key measure of a retailer’s health, grew at an average rate of 4.1% each year during that time period. The lone recent hiccup came in the second quarter, when Ollie’s reported a 1.7% decline in comparable store sales as the chain grappled with supply chain pressures, which sent its stock tumbling in late August.
“Mark built a successful and enduring retail concept, assembled an incredible team, created thousands of jobs and delivered millions of bargains to our customers, while delivering exceptional shareholder value along the way,” Zannino said. “We will dearly miss Mark and extend our heartfelt sympathy and condolences to Mark’s entire family.”
On its homepage, under a banner reading, “one of America’s largest retailers of closeout merchandise and excess inventory” and next to the recognizable Ollie caricature, a video in which Butler appears touts the chain’s offering of real brands at up to 70% off the “fancy” store prices. Ollie’s, by its own description, has “no-frills, semi-lovely warehouse-style stores,” locations where consumers often don’t know what they will find when they walk in.
“You’re always going to be able to find toys at Christmas and fertilizer in the spring, but you just never know if it’s going to be Scotts or American Way or Barbie or G.I. Joe,” Butler says in the video.
Perhaps some of that treasure-hunt feeling is why Ollie’s is rapidly growing, with net income growing to $135 million in its most recent fiscal year even as a changing industry has continued to claim retailers who refuse to evolve. Meanwhile, Ollie’s remains solely focused on brick-and-mortar, something Forbes detailed in a story this year, “The Outlandish Story of Ollie’s: A $5 billion Retail Empire That Sells Nothing Online (But Is Beating Amazon).”
Today, Ollie’s has 345 stores across 25 states, a portfolio that includes locations in South Whitehall Township; Hanover Township, Lehigh County; and outside Quakertown in Richland Township. The chain employs more than 8,000 people.
According to the chain’s annual report, the company believes, based on internal estimates and third-party research, that an opportunity exists for more than 950 Ollie’s locations across the country.
But it will have to get there without Butler, who was the company’s last living founder. Ollie’s stock closed at $58.99 on Monday, down 9.8% on the news of Butler’s death.
Swygert, the interim president and CEO, has been the company’s executive vice president and chief operating officer since January 2018. Before that, he had been chief financial officer since 2004.
“During his 15 year tenure, John worked closely with Mark and played an integral role in the growth and success of Ollie’s,” Zannino said. “Together, they built a talented, passionate and high-performing management team. Based on John’s intimate knowledge of the company and the closeout business, and the strength and tenure of the Ollie’s team, the board has the utmost confidence in John’s ability to successfully lead the Company at this time. We will continue to support them in every way possible.”
Morning Call reporter Jon Harris can be reached at 610-820-6779 or at jon.harris@mcall.com.
