Five Below is rising above brick and mortar retail narratives with aggressive expansion plans.
The discount retailer is planning to open 200 stores this year, according to Bisnow. President Joel Anderson detailed the company’s shifting real estate strategy during a fourth quarter earnings call last week.
The rollout of stores would be a record for Five Below. Last year, the company opened 150 locations, bringing its total to 1,340 — even if it falls short of its overall plan, it appears there will soon be more than 1,500 stores across the country.
True to its name, Five Below’s trademark is items sold for $5 or less. But the retailer also has plans to remodel 400 stores this year to accommodate its Five Beyond section. As one could guess, this section sells items above its moniker’s threshold.
The company plans to bring its Five Beyond section to every location eventually. At the moment, approximately 20 percent of its portfolio has a Five Beyond section, according to Chain Store Age.
Another important takeaway about the chain’s real estate presence is an expansion into different markets. While the company has typically focused on suburban centers, it is eyeing more locations in rural and urban areas, specifically planning a push at grocery-anchored shopping centers and outlet stores.
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Forecasts of doom and gloom in the retail market during the pandemic and e-commerce boom have given way to more optimism about the performance of traditional stores. That’s especially been true for discount retailers that are looking to proliferate as consumers remain cost-conscious at a time of high inflation.
Dollar General and Dollar Tree were projected to open a combined 1,300 stores by the end of the previous fiscal year, pacing the nation in retail openings. The year before, nearly half of the 3,600 store openings nationwide were discount shops.
— Holden Walter-Warner