Move Over Dollar Stores! The Teen Market Is Shopping At Five Below
There is a reason they feel threatened; the chain is growing fast. In 2008, Five Below had just 82 locations. Today there are 366 sites, according to a recent report by Morgan Stanley. And consumers are snapping up Five Below merchandise, which ranges from tech accessories to bedroom decor, with total sales passing the $500 million mark.
Five Below seems to have found the key to reaching its target market. Even though the chain is much smaller than its competitors, according to Morgan Stanley, the trendy brand is much more popular with teens than chains like Dollar General and Family Dollar.
“While big-box chains are generally getting smaller, Five Below’s price point is low enough to bring in customers,” reports Business Insider.
Its quick imitations of popular teen trends, such as Rainbow Loom, has become a hit with young buyers.
“Our goal is not to be first to identify a trend — we have the ability to be a very fast second,” CEO and cofounder Tom Vellios told BuzzFeed.