Ollie's Bargain Army Hits 16M in Q2: Loyalty Driving 80% of Sales?

Ollie's Bargain Outlet Holdings, Inc.’s OLLI second-quarter fiscal 2025 results showcased the growing strength of its Ollie’s Army loyalty program. Membership climbed 10.6% year over year to 16.1 million, underscoring the program’s expanding reach. Management emphasized that this loyal customer base now drives roughly 80% of total sales, positioning Ollie’s Army as a key engine of growth and a powerful driver of engagement and repeat spending.

The quarter also highlighted the success of the reimagined Ollie’s Days event. This was an exclusive, members-only shopping week designed to reward loyal shoppers and acquire new ones. Management noted that the event was a huge success, leading to a nearly 60% increase in new member acquisitions during that week. The impact on the top line was substantial, with the event adding an estimated 100 basis points to comparable store sales for the quarter. 

Members are not only signing up in larger numbers but also demonstrating stronger spending habits. The company reported that Ollie's Army members tend to spend about 40% more than non-members. This significant contribution shows how vital the program is to the business's overall sales momentum in a competitive retail landscape.

By combining strong merchandising with a rapidly expanding membership base, Ollie’s has created a retail ecosystem where promotional activity and loyalty work hand in hand, helping drive both traffic and transaction growth. Ollie’s Bargain anticipates comparable store sales growth of 3-3.5% for fiscal 2025, reflecting confidence in its strategic initiatives and the continued strength of its loyal customer base.

Walmart and Target's Loyalty Strategies

While Ollie’s Bargain celebrates 16 million loyal customers, driving 80% of sales, retail giants Walmart Inc. WMT and Target Corporation TGT showcase different approaches to customer loyalty and engagement.

Walmart's membership-focused strategy centers around Walmart+ and Sam's Club memberships, with membership fee income growing 15.3% globally in the second quarter of fiscal 2026. Sam's Club U.S. saw steady growth in member counts, renewal rates and Plus member penetration, resulting in 7.6% membership income growth, while Walmart+ membership income grew in the double digits. Walmart's fee-based model generates direct revenues from loyalty programs, creating a sustainable income stream beyond traditional retail margins.

Target is gaining traction with its Target Circle 360 program, which fueled more than 25% growth in same-day delivery during the second quarter of fiscal 2025. The initiative reflects Target’s strategy of blending convenience with service differentiation to strengthen customer loyalty. Target Circle Card penetration reached 16.9% in the quarter, underscoring deeper engagement from core shoppers. In the second quarter, loyalty was key in stabilizing store traffic and supporting a 4.3% increase in digital comps. With benefits such as personalized discounts, fast fulfillment and 5% discount, Target Circle continues to enhance stickiness and position loyalty as a key driver of repeat traffic and basket growth.

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