Five Below Accelerates Growth with 150 New Stores Planned by End of 2025
Five Below, the popular specialty discount retailer known for selling products primarily priced at $5 or less, has announced ambitious expansion plans with 150 new stores scheduled to open by the end of 2025. According to Chief Financial Officer Kristy Chapman, 50 of these locations are slated to open by the end of March 2025, with the remaining 100 launching throughout the year.
“Five Below’s aggressive expansion plan reflects our strategic commitment to capturing market share in the value retail sector while maintaining our core promise of delivering ‘wow’ products at accessible price points.” – Kristy Chapman, CFO of Five Below
Strategic Market Positioning
Founded in 2002, Five Below has built its success on a unique business model targeting tweens, teens, and value-conscious shoppers across various age demographics. The retailer offers a diverse range of trend-right merchandise across eight categories: Style, Room, Sports, Tech, Create, Party, Candy, and Now.
This expansion strengthens Five Below’s position in the competitive discount retail landscape, where consumers increasingly seek affordable options amid persistent inflationary pressures. The company continues to differentiate itself by maintaining its core $5-and-below pricing strategy while selectively introducing higher-priced items through its “Five Beyond” sections.
Show Image Five Below’s modern storefront design emphasizes the brand’s youthful appeal. Credit: Five Below Corporate Communications, March 2024
Current Operations and Growth Trajectory
Currently, Five Below operates approximately 1,807 stores across 45 states. The planned additions will bring the total number of locations close to 2,000 by the end of 2025, representing an 8.3% increase in the company’s retail footprint. Market analysts note that the expansion focuses particularly on underserved suburban markets and growing metropolitan areas where the value proposition resonates strongly with consumers.
“Our expansion strategy aligns with our long-term vision of operating over 3,500 stores nationwide,” stated Chapman during the company’s recent earnings call. This ambitious target suggests Five Below has identified substantial untapped market potential despite an increasingly competitive retail environment.
Financial Performance Fuels Expansion
This expansion follows impressive financial results. In the fourth quarter, Five Below reported adjusted earnings per share (EPS) of $3.48 and net sales of $1.39 billion, exceeding analyst expectations. The company attributes this success to its merchandising strategy, improved operational execution, and enhanced in-store experience initiatives.
Show Image Five Below’s store layout highlights affordability and trend-right merchandise. Credit: Business Insider, October 2024
Looking Forward
As inflation continues to impact consumer spending habits, Five Below’s value proposition and expansion strategy position the company to capitalize on increased demand for affordable shopping options. The retailer’s commitment to maintaining core price points while selectively expanding its offerings demonstrates a measured approach to growth that has resonated with both consumers and investors.
Industry experts anticipate that this expansion will not only increase Five Below’s market share but also enhance its supply chain efficiencies and strengthen its negotiating position with vendors, potentially leading to improved margins despite inflationary pressures.
