You might feel like you’ve seen this story a hundred times this week: retailers announce strong (or record-breaking, in some cases) holiday sales to close out 2022. Such was the case with the American Eagle. (AEO) – Get Free Reportwalmart (WMT) – Get Free Reportand even Rolls Royce (Lysef) .
In some cases, significant price increases have fueled these sales surges, thanks to record inflation over the past 40 years. (Overall, shoppers spent a total of $212 billion this holiday season.)
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But that’s not necessarily the case with Five Below. (Five) – Get Free ReportDiscount specialty retailer net sales increased 11 percent for the period October 30 through January 7 compared to the same period last year. Like-for-like sales—that is, sales at stores that have been open for more than a year—had increased by nearly 1%. He added that management expects fourth quarter and fiscal year earnings to be at the high end of analyst expectations.
Those are good numbers. Still, in a news cycle where nearly every retailer is posting about their very good holidays, the gravity of Five Below’s success may not get the recognition it deserves.
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Five Below’s cheery coverage isn’t just a bright spot on a dark page.
The company represents New Guard, a brand with an incredibly efficient strategy and distribution.
Ranked the fastest growing teenage retailer in 2014, Five Below has certainly lived up to the hype. As the name suggests, everything in the store is under $5 (Five Beyond’s sister stores, which now have stores across the country, offer “great value” products just north of it). I can). Each store is now divided into his eight “worlds”: Style, Room, Sports, Tech, Create, Party, Candy, New & Now. Its New & Now world is particularly valuable, as it allows Five Below to enter (and sometimes create) trending toys and merchandise among its younger customer base.
And capturing the appeal of a young audience is where Five Below thrives. Older retailers try to attract younger demographics with things like fast fashion and sustainable products, but Five Below meets teens and young adults at the center of trends. From popular stuffed animal “Squishmallows” and cheap candies to services such as ear piercings depending on the store, various products are flying around.
CEO Joel Anderson said in a recent interview, “It’s important not only to jump on the bandwagon, but also to know how to land a plane and escape.” You never see leftovers of a product.” The company is known for its efficient “flow of goods,” with products rarely sitting on the shelf for long.
Unlike other retailers, Five Below has a lot to do
Hanging out with teens and young shoppers is one thing. But maintaining endurance is another thing altogether, and Five Below somehow finds a way around it.
And when you combine a loyal and young consumer base with strong fundamentals and leadership and expansionist aspirations, you have a compelling stock. When company.
In fact, Five Below plans to triple its store count by 2030 and double its revenue by 2025. These eye-popping numbers are only seen by retailers that are still relatively early in their market penetration. In other words, you rarely see old-fashioned big box stores like Walmart. (WMT) – Get Free Report or target (target) – Get Free Report Set such lofty goals. If so, check out the prices on their staple items as you may be being ripped off.
