Business Buzz
By Rich Baehrle
Somers Point has great news. A new store is going to occupy the vacant space that was once the home of Big Lots at 257 New Road.
Unfortunately Big Lots fell victim to what many retailers have experienced in recent years: too much debt, wrong corporate strategy, online competition and failure to adapt to changing markets.
I learned a term back in college: “Zero Sum Society.” It basically means that for every winner there is a loser. The term is more valid today than ever in the retail industry, especially with the global competition that comes to our homes via the internet.
The current winner in the discount retail space is Ocean State Job Lot, which is headquartered in North Kingston, R.I. When Big Lots went bankrupt in 2024, the privately held discount retailer Ocean State Job Lot quickly analyzed the soon-to-be-vacant stores, rapidly swept in and took over 15 locations at a discounted rate. It was perfect timing as the company was able to secure great locations for very attractive deals.
Ocean State is relatively new to South Jersey. However, since it was founded in 1977 by partners Marc and Alan Perlman, and Roy Dubs, it has expanded to more than 150 stores companywide. They are located across the Northeast, including New England, New York, New Jersey, Pennsylvania and most recently into Maryland. New Jersey has new stores in Deptford, Cape May, Barnegat, Clinton, South Plainfield, Freehold, Holmdel, Franklin Park and Sparta. More growth is planned in the near future.
The strategy is simple. The growth is primarily through acquiring leases from bankrupt or closing retailers such as Big Lots and others, which enables them to expand efficiently. The approach allows OSJL to enter new markets with substantially reduced overhead costs. In contrast, some competitors like Big Lots have faced financial challenges, leading to store closures and eventual bankruptcy.
Ocean State Job Lot offers a diverse variety of merchandise, including household goods, apparel, pet supplies, seasonal items and pantry staples. The company is able to offer the products at deeply discounted prices – an average between 20 to 60% they say – by purchasing closeouts and overstock merchandise. The discounted prices vary depending on the buyout. However, their philosophy is if the company can save money, they are going to pass the savings on to the customer.
The company says the steady expansion can be attributed to strategic growth, manageable debt, which assures sustainability, community engagement, and employment development.
They like to get involved in each community they serve through various charitable initiatives and other avenues, which conveys a message to the consumer that Ocean State Job Lot is a great local corporate friend. This sincere approach has positioned the company as a resilient and growing player in the retail industry.
American consumers are more conscientious than ever and Ocean State Job Lot is listening by paying attention to consumers’ spending patterns and responding with quality merchandise at the best possible price.
Stay tuned for the opening of the Somers Point store in the very near future. You will be able to experience what makes this retailer stand out from the competition.
When I walked into the Deptford Store, I immediately noticed the low prices and quality items. I am happy we will have the opportunity to shop at such a great store locally. Learn more at www.oceanstatejoblot.com.
Remember to shop locally and stay offline.
Rich Baehrle, of Berkshire Hathaway Fox and Roach, can be reached at 609-226-6680 or 609-641-0011. Email richardbaehrle@gmail.com or see www.getrichinrealestateSJ.com
