As Competitors Close, Five Below Thrives with 150-store Growth Plan

Discount retailer Five Below is bucking the retail downturn, leveraging a massive sales surge to fuel an aggressive nationwide expansion while competitors shutter their doors. The company's blockbuster second-quarter earnings report revealed a nearly 24% jump in net sales, empowering it to continue its rapid brick-and-mortar growth.

• Retail apocalypse, now?: While thousands of store closures are predicted across the retail sector this year, Five Below is charting a different course. The company confirmed plans to open approximately 150 new stores in 2025 as part of its long-term vision to operate 3,500 locations, a significant increase from its current footprint of nearly 1,900 stores.

• The five-dollar formula: The engine of this growth is a 12.4% jump in comparable sales, driven by more shoppers in stores and higher spending per visit. CEO Winnie Park credits the success to a simplified pricing strategy that keeps most items at clear $1 to $5 price points. "We have been maniacally focused on executing with excellence... simplifying our pricing while maintaining extreme value," Park stated.

Five Below is betting its strategy of providing fun on a budget has a long runway. The company confidently raised its full-year guidance for both revenue and earnings, signaling it expects its growth streak to continue. It isn't the only discounter growing; chains like Ollie’s and Ross are also adding locations, standing in stark contrast to the broader retail gloom that has seen chains like Claire's close their doors. On the ground, new store openings are becoming local events, complete with customer giveaways and promotions to build buzz.