The toy, games, room decoration and technology accessory store is aimed at teenagers and twins as its main customers and sells most of its goods for – as its name suggests – under $ 5. 180 new stores will open.
Five below (FIVE) opened 120 new stores last year – which put it above the 1,000 store mark – and it’s a strong holiday. Five Under’s sales in stores that have been open for at least one year increased by 13.8% during the 13 weeks to January 30 compared to the same period last year.
The company took ‘much of the wallet stock that once went to Toys’ R ‘Us,’ said Sucharita Kodali, a retail analyst at Forrester. Toys “R” Us filed for bankruptcy in 2017, closing more than 700 stores in North America. (WHP Global, a brand management company, bought a controlling stake in the company and announced Monday it could open U.S. stores.)
Five Below is a gap in the market, ‘Kodali said.
Five Below have small shops, about the size of a drugstore, and count themselves as a “high-energy retail concept” in regulations. The caption: “Let Go & Have Fun.” Shops have low shelves, colorful signs, pop music playing on speakers and wheelbarrows, and oil drums full of merchandise.
Sporting goods, games, toys, technology, books, electronic accessories and arts and crafts make up about half of Five Below’s annual sales of about $ 2 billion. T-shirts, beauty offers and home goods make up about 30% of sales, while party and seasonal goods, greeting cards, sweets and snacks make up 19%. Five Below has recently moved into new areas, such as esports, and partnered with Instacart to offer home delivery.
Five Below tries to keep it from competitors like dollar stores, big box stores and Amazon (AMZN) by focusing on finding a targeted segment of buyers.
“We monitor trends in the ever-changing market between teens and teens and can quickly identify and respond to trends,” the company said in the documentation. Our price points enable teens and teens to shop independently, and often use their own money. to make regular purchases. ‘
Other discount retailers are also growing rapidly.
Dollar General (DG) said Thursday that it will open 1,550 new stores this year. Dollarboom (DLTR), Burlington Shops (BURL), Grocery Store (GO), TJX (TJX) and Aldi are also opening new locations this year.
Kodali said discount chains could obtain new leases at favorable prices due to competitive store closures.
“There are a lot of desperate landlords who need tenants.”
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