Shares of Five Below, the discount store that sells cyclops snot and fairy toots to America’s future leaders for under $5, shot up 21.9% last week — the company’s biggest day in 5 years.
With profits across its 650 locations 129% higher than this time last year, the company plans to open 125 new stores.
Toys ‘R’ Us’ undignified demise made apocalyptic predictions about the death of retail seem inevitable — but Five Below’s success shows brick and mortar is alive and well in the age of e-commerce.
Five Below items are 50% less expensive than similar products on Amazon. How do they do it? By doubling down on the stupid sh*t kids like and selling them like gangbusters.
“Slime, smiley, squishy, spa, and mermaid trends continue to be popular,” CEO Joel Anderson explained on an earnings call.
At $1.50, how can you say no to zombie drool slime? The price point ensures that Five Below sells more fad products than e-commerce rivals (think fidget spinners — lucrative but short-lived).
The cooler FB sailed through the recession largely unscathed thanks to its prices — yet now that the economy is looking good, revenue is on track for $1.5B.