Five Below, Inc. (FIVE) is an American publicly held chain of specialty discount stores targeted at teens and pre-teens. The company was founded in 2002 by David Schlessinger, the founder of Zany Brainy, and Tom Vellios who was the former CEO of Zany Brainy. The name "Five Below" stems from the concept that all merchandise in the store is priced at $5 or less.
The company is headquartered in Philadelphia, Pennsylvania, and primarily operates across the Eastern, Southern, and Midwest regions of the United States. Five Below stores are typically located in strip malls as opposed to standalone locations. The business model is focused on offering a wide variety of merchandise including toys, beauty products, candy, snacks, home decor, school supplies, and electronics, all at extremely low prices.
Since its inception, Five Below has gradually grown its footprint across the country. As of 2021, the store boasts a network of over 1000 locations across 38 states. One of the major factors driving this rapid expansion has been the company's appeal to bargain-hunting teens and pre-teens, as they provide trendy, high-quality products at affordable prices. Yet, it is not just the young audience that finds Five Below appealing. The company’s selection of low-cost goods also attracts parents, young adults, and anyone searching for a good deal.
Over the years, Five Below has prioritized an omnichannel retail approach, updating its online presence and delivery capabilities while continuously expanding its brick-and-mortar stores. Their fun and dynamic store environment, combined with an ever-changing assortment of products, has made each Five Below store a favourite destination for customers.
Financially, Five Below has experienced steady growth and profitability. Despite temporary store closings during the COVID-19 pandemic, the company managed to maintain financial stability, bolstered by a surge in online sales.
In conclusion, Five Below, Inc. (FIVE) is a resilient company in the retail discount industry, known for its unique business strategy of selling trendy, high-quality products at very affordable price points. Its commitment to variety, quality, value, and fun has set it apart as a key player in targeted teen and pre-teen demographics and beyond.