See inside Five Below, the fast-growing discount chain that sells everything for under $5 (2024)

Table of Contents
Five Below is a growing chain of discount stores with the same model as dollar stores —nearly everything sells for $5 or less. The COVID-19 pandemic made online orders surge, but most brick and mortar retailers were hit hard by restrictions, and many permanently or temporarily closed. Five Below is one of the few chains, along with some other discount retailers, that actually added stores. It opened 120 in 2020, with plans to open another 180 in 2021. Walking inside, it's easy to see why Five Below has been so successful. The chain's merchandise is constantly changing, and the pieces are always very trendy, like candles, fuzzy blankets, and faux plants. Inexpensive decor mimics similar pieces at popular stores like Home Goods and TJ Maxx, but at lower prices. With sales of pool supplies and other outdoor accessories booming, Five Below is on-trend selling pool noodles, outdoor games, and swimming goggles. A pandemic spike in pool ownership and the arrival of summer meant that goggles and pool toy displays were all over the store. Five Below consciously stays on top of trends to appeal to young buyers. "We target an attractive customer segment of tweens and teens with trend-right merchandise at differentiated price points," the chain said in its annual report. In other words, Five Below portrays itself as a trendier, younger version of a typical dollar store. A major portion of the store is dedicated to electronics. Keyboards and headsets are advertised especially for gaming. Five Below doesn't really sell video games, which would be too expensive for the store premise, but gamers can find all the necessary accessories for playing. Even end caps seem aimed at teens, with brightly colored AirPods cases. School supplies are another big part of Five Below's inventory, indicating the chain's young customers. Displays of pens, pencils, and glue sticks wouldn't look out of place at big box stores like Walmart and Target ahead of the new school year. The back wall of the store is full of workout and athletic supplies. The store sells dumbbells, kettlebells, yoga mats, resistance bands, and other low-cost training equipment. These workout supplies are behind more than a dozen buckets filled with footballs, soccer balls, volleyballs, and more. It also sold bicycle helmets, which were in short supply and difficult to find earlier this year. Some parts of Five Below seem designed to appeal to tweens and even younger. From the action figures to t-shirts, Five Below has plenty of pop culture merchandise, almost like a discount Hot Topic store. About a quarter of the store is dedicated to low-priced hair accessories, makeup, and skincare. Inexpensive palettes and familiar drugstore makeup brands cover shelves on one side of the store. These products seem to target Five Below's customer base between the ages of 5 and 19 with "a significant amount of disposable income," according to the chain's annual financial report. The rest of the store is filled with knick-knacks, snacks, craft supplies, and other fun non-necessities. Most of the products at Five Below could be found in stores throughout a traditional mall or even CVS or Walgreens, but Five Below's strategy is that "we offer all of these products in an exciting and easy to shop retail environment," the company said in its annual report. Five Below also stays relevant to young buyers with constantly changing inventory. To reach the checkout area and leave, customers have to walk through a large display of candy and snacks, a kind of enhanced version of checkout lane candy bars in a grocery store designed to be noticed by customers and purchased at the last minute. Five Below says the variety of classic and new candy options and seasonal offerings are also designed to appeal to teens and tweens. This location only had self-checkout machines, with no cashiers. Five Below's huge selection of low-priced items that appeal to young customers is the reason for the chain's success. As long as teenagers have disposable income, Five Below is well-positioned to keep growing. FAQs
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Mary Meisenzahl

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (1)

John Greim/Getty Images
  • Five Below has had a successful year and continued opening new stores throughout the pandemic.
  • I visited one to see why it's been so popular.
  • Five Below successfully embraces trends and items that were hard to find during the pandemic.

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Five Below is a growing chain of discount stores with the same model as dollar stores —nearly everything sells for $5 or less.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (2)

The COVID-19 pandemic made online orders surge, but most brick and mortar retailers were hit hard by restrictions, and many permanently or temporarily closed.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (3)

Advertisem*nt

Five Below is one of the few chains, along with some other discount retailers, that actually added stores. It opened 120 in 2020, with plans to open another 180 in 2021.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (4)

Source: Insider

Walking inside, it's easy to see why Five Below has been so successful.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (5)

Advertisem*nt

The chain's merchandise is constantly changing, and the pieces are always very trendy, like candles, fuzzy blankets, and faux plants.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (6)

Inexpensive decor mimics similar pieces at popular stores like Home Goods and TJ Maxx, but at lower prices.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (7)

Advertisem*nt

With sales of pool supplies and other outdoor accessories booming, Five Below is on-trend selling pool noodles, outdoor games, and swimming goggles.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (8)

A pandemic spike in pool ownership and the arrival of summer meant that goggles and pool toy displays were all over the store.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (9)

Advertisem*nt

Five Below consciously stays on top of trends to appeal to young buyers. "We target an attractive customer segment of tweens and teens with trend-right merchandise at differentiated price points," the chain said in its annual report.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (10)

In other words, Five Below portrays itself as a trendier, younger version of a typical dollar store.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (11)

Advertisem*nt

A major portion of the store is dedicated to electronics.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (12)

Keyboards and headsets are advertised especially for gaming.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (13)

Advertisem*nt

Five Below doesn't really sell video games, which would be too expensive for the store premise, but gamers can find all the necessary accessories for playing.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (14)

Even end caps seem aimed at teens, with brightly colored AirPods cases.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (15)

Advertisem*nt

School supplies are another big part of Five Below's inventory, indicating the chain's young customers.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (16)

Displays of pens, pencils, and glue sticks wouldn't look out of place at big box stores like Walmart and Target ahead of the new school year.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (17)

Advertisem*nt

The back wall of the store is full of workout and athletic supplies.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (18)

The store sells dumbbells, kettlebells, yoga mats, resistance bands, and other low-cost training equipment.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (19)

Advertisem*nt

These workout supplies are behind more than a dozen buckets filled with footballs, soccer balls, volleyballs, and more.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (20)

It also sold bicycle helmets, which were in short supply and difficult to find earlier this year.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (21)

Source: Insider

Advertisem*nt

Some parts of Five Below seem designed to appeal to tweens and even younger.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (22)

Advertisem*nt

From the action figures to t-shirts, Five Below has plenty of pop culture merchandise, almost like a discount Hot Topic store.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (23)

About a quarter of the store is dedicated to low-priced hair accessories, makeup, and skincare.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (24)

Advertisem*nt

Inexpensive palettes and familiar drugstore makeup brands cover shelves on one side of the store.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (25)

These products seem to target Five Below's customer base between the ages of 5 and 19 with "a significant amount of disposable income," according to the chain's annual financial report.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (26)

Advertisem*nt

The rest of the store is filled with knick-knacks, snacks, craft supplies, and other fun non-necessities.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (27)

Most of the products at Five Below could be found in stores throughout a traditional mall or even CVS or Walgreens, but Five Below's strategy is that "we offer all of these products in an exciting and easy to shop retail environment," the company said in its annual report.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (28)

Advertisem*nt

Five Below also stays relevant to young buyers with constantly changing inventory.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (29)

To reach the checkout area and leave, customers have to walk through a large display of candy and snacks, a kind of enhanced version of checkout lane candy bars in a grocery store designed to be noticed by customers and purchased at the last minute.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (30)

Advertisem*nt

Five Below says the variety of classic and new candy options and seasonal offerings are also designed to appeal to teens and tweens.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (31)

This location only had self-checkout machines, with no cashiers.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (32)

Advertisem*nt

Five Below's huge selection of low-priced items that appeal to young customers is the reason for the chain's success. As long as teenagers have disposable income, Five Below is well-positioned to keep growing.

See inside Five Below, the fast-growing discount chain that sells everything for under $5 (33)

Do you have a story to share about a retail or restaurant chain? Email this reporter atmmeisenzahl@businessinsider.com.

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See inside Five Below, the fast-growing discount chain that sells everything for under $5 (2024)

FAQs

Is everything $5 or less at five below? ›

The name of this store comes from the idea that most things in the shop cost five dollars or below, but they have also recently added a Five Beyond section. In this section, items cost more than five dollars, but Five Below boasts that the prices are still far below its competitors.

What is the target market for five below? ›

Five Below is essentially a dollar store for teenagers. They target a demographic between the ages of 5 and 19, which is about a fifth of the U.S. population.

Is Five Below growing? ›

The company said that's a 17.4% year over year increase in store count. Five Below plans to open 230 stores by end of year and Anderson said the company still sees “a long runway of growth” reiterating previous statements that it wants to operate 3,500 locations nationwide by the end of 2030.

Why is Five Below so popular? ›

Five Below is a leading high-growth value retailer offering trend-right, high-quality products loved by tweens, teens and beyond. We believe life is better when customers are free to "let go & have fun" in an amazing experience filled with unlimited possibilities.

Why does $5 below have $10 items? ›

The obvious economic explanation for Five Below's shift here is that by charging 10 bucks for products that are still pretty cheap to make, it's going to earn more profit. But this isn't exactly a move born of desperation, either.

Are Five Below products good? ›

Whether you're looking for cute home décor, candy and food, or make-up, you'll most likely save a bundle at Five Below. Just remember that not all products are the highest quality so do your research or, better yet, shop in stores so you can see exactly what you're getting before you buy.

What is five below price target? ›

The average price target for Five Below is $162.11. This is based on 20 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $223.00 ,the lowest forecast is $120.00. The average price target represents 52.72% Increase from the current price of $106.15.

What are the 4 types of target marketing? ›

Demographic, psychographic, geographic, and behavioral are the four pillars of market segmentation, but consider using these four extra types to enhance your marketing efforts.

Is it hard to get hired at 5 below? ›

Five Below Interviews FAQs

Is it hard to get hired at Five Below? Glassdoor users rated their interview experience at Five Below as 67.4% positive with a difficulty rating score of 1.78 out of 5 (where 5 is the highest level of difficulty).

Is Five Below in debt? ›

Total debt on the balance sheet as of April 2024 : $1.83 B

According to Five Below 's latest financial reports the company's total debt is $1.83 B. A company's total debt is the sum of all current and non-current debts.

How much does the CEO of Five Below make a year? ›

According to our data, Five Below, Inc. has a market capitalization of US$7.8b, and paid its CEO total annual compensation worth US$10m over the year to February 2024.

What is the target audience for Five Below? ›

Five Below is a leading high-growth value retailer offering trend-right, high- quality products loved by tweens, teens and beyond.

Who is the owner of Five Below? ›

Five Below, Inc. is an American chain of specialty discount stores that prices most of its products at $5 or less, plus a smaller assortment of products priced up to $25. Founded by Tom Vellios and David Schlessinger and headquartered in Philadelphia, Pennsylvania, the chain is aimed at tweens and teens.

Is 5 below really 5 below? ›

Five Below, Inc. is an American chain of specialty discount stores that prices most of its products at $5 or less, plus a smaller assortment of products priced up to $25. Founded by Tom Vellios and David Schlessinger and headquartered in Philadelphia, Pennsylvania, the chain is aimed at tweens and teens.

What is 5 below selling? ›

Five Below's consumable categories include candy, snacks, health and beauty products and travel items. Ahead of the most recent holiday season, the company also introduced the option to buy online, pick up in store.

Is Five Below changing their prices? ›

Inflation had made it necessary to raise prices on select products, while other products price points will not change. Five Below is following this trend as it introduced Five Beyond into its stores and will continue to expand the higher price point section to be part of its retail floorplan in 400 more stores in 2023.

Does Five Below give discounts? ›

Five Below brings our customers the coolest stuff for the hottest prices! Our everyday assortment is already priced at the lowest possible cost, so we do not accept coupons. Stay tuned to our website and sign up for our emails: we sometimes send out promo codes via our email blasts.

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