US retailer Five Below plans 100 more stores

After posting its 11th consecutive quarter of positive same-store sales growth, US teen fashion retailer Five Below has revealed ambitious expansion plans.

At a time when most US retailers are struggling to hold their own in same-store sales and market share under increasing attack from online rivals, Five Below has identified a clear niche in the retail market.

Focusing solely on apparel for tweens and teens, priced at a maximum US$5, the retailer now plans to open 100 stores this year, following 85 last year. It currently has 500. This year will see its debut in the California market.

Five Below says its net profit for the quarter to January 28 rose 18.5 per cent to $49.8 million. Total sales rose 18.9 per cent to $388.1 million, with same-store sales creeping up 1 per cent.

Full year sales topped $1 billion with profit $71.8 million.

“Our performance in 2016 once again illustrates the strength, consistency and broad appeal of the Five Below model with a compelling merchandise assortment designed to ‘wow’ our customers at incredible values,” said Joel Anderson, CEO, Five Below, in an earnings statement.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.