The toy, game, room decoration and tech accessory store targets teens and tweens as its key customers and sells most of its stuff for — as its name suggests — under $5. It said Wednesday that it will open 170 to 180 new stores this year.
Five Below is “filling a void in the market,” Kodali said.
Five Below has small stores, around the size of a drug store, and bills itself as a “high-energy retail concept” in regulatory filings. Its tagline: “Let Go & Have Fun.” Stores have low shelves, colorful signs, pop music playing on speakers and wheelbarrows and oil drums full of merchandise.
“We monitor trends in the ever-changing tween and teen markets and are able to quickly identify and respond to trends that become mainstream, the company says in filings. “Our price points enable tweens and teens to shop independently, often using their own money to make frequent purchases.”
Other discount retailers are growing rapidly, too.
Kodali said that discount chains are able to secure new leases at favorable prices because of rival store closings.
“There are a lot of desperate landlords that need tenants.”