Five Below to Add Up to 150 New Stores in 2019
Discount retailer Five Below plans to open between 145 and 150 stores this year as off-price concepts continue to do well in the changing retail landscape. The company will end 2019 with nearly 900 stores nationwide after the addition of the stores, according to a company press release. Net sales at Five Below increased 23.5 percent in 2018, according to its most recent earnings statement. Furthermore, Five Below is forecasting an estimated 3 percent increase in comparable sales this year, leading net sales to reach as high as $1.885 billion.
Total Retail's Take: Much like others in the off-price retail sector, including TJX Companies (parent company of T.J. Maxx, Marshalls), Ross Stores, and Burlington, Five Below is cashing in on strong strong consumer demand for its low-priced merchandise. Five Below is looking to build upon that strong demand by opening more stores in 2019. In addition, Five Below has an e-commerce website, unlike Ross Stores and Marshalls (although one is coming), helping to drive sales. While the struggles of traditional brick-and-mortar retailers have been grabbing headlines in the first quarter of 2019 — as of the beginning of March, store closures in 2019 had already nearly reached 2018's total — the off-price store sector shows no signs of slowing down. Five Below is wisely looking for measured steps to capitalize on that trend.