A BELOVED discount retailer has revealed that it will be opening several new stores this year.
Some are even set to be completed in the coming days as the brand focuses on value for consumers.
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By the end of 2025, Five Below intends to expand its reach by at least 150 stores, according to comments from CFO Kristy Chapman during an earnings call on Wednesday.
At least 50 of those stores are set to be operational by the end of the first fiscal quarter, which is on March 31, 2025.
“We expect to open approximately 50 new stores in the first quarter and sales are expected to be between flat and positive 2%,” Chapman told investors.
The CFO also noted that an additional 22 Five Below stores were opened at the end of the fourth quarter on December 31, 2024.
Read More on Store Openings
It’s unclear exactly when the remaining 100 locations will open nationwide, but it will likely be spread out throughout the remainder of the year.
According to Five Below’s website, its store count is approximately 1,807 across 45 states.
With the new locations coming this year, that would put Five Below extremely close to 2,000 locations.
PRICING PROMISE
CEO Winnie Park, who recently took the helm in December, also said that the retailer would be focusing on offering affordable deals for parents and their children in 2025.
“Our vision is to be the destination for kids from elementary through high school and beyond, as well as mom and dad,” Park explained.
“By focusing on the kids first, we have a unique opportunity to vote a relationship with our customers from a young age and be a go-to resource as they grow and become parents themselves.”
Park also noted that there would be trending, “fresh and relevant” products with “extreme value” at $5 and below and on the few items that are above $5.
“Our priority is to keep prices low and our offering accessible to ensure we maintain the trusts and loyalty of our customers and attract new customers to the brand,” the CEO emphasized.
It’s likely music to the ears of some shoppers who have claimed recently that Five Below has become “cheaper than Dollar Tree,” a major competitor, per a post on Facebook.
MAKING MOVES
Other competing discount retailers like Dollar General are also making changes this year that include store openings.
“We expect to open approximately 50 new stores in the first quarter and sales are expected to be between flat and positive 2%.”
Kristy Chapman
Earlier this month, Dollar General said it would end 2025 with about 600 new locations.
That wasn’t long after it also confirmed the closing of 141 underperforming stores.
The count includes 96 Dollar General stores and 45 pOpshelf stores.
CEO Todd Vasos explained on an earnings call that “the number of closings represents less than one percent of our overall store base.”
“We believe this decision better positions us to serve our customers and communities,” he added.
POPSHELF PAINS
While Dollar General’s store count will be thriving by the end of the year, the decrease of the 45 locations for pOpshelf accounts for about 22% of its current footprint.
POpshelf is a more premium concept from Dollar General that it launched in 2020, with seasonal and home decor items, cleaning supplies, and party goods.
Dollar General has plans to boost pOpshelf sales through brand partnerships and updates to the in-store experience.
Five Below also made significant updates to its checkout experience last summer that had customers fuming about “awkward positioning.”
There was also a major shelf change at Dollar Tree recently that annoyed some customers.
