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Five Below

Five Below, Inc. is an American chain of specialty discount gift shops that prices most of its products at up to $5, plus a smaller assortment of products priced up to $40.[5] Founded in 2002 by Tom Vellios and David Schlessinger and headquartered in Philadelphia, Pennsylvania, the chain is aimed at tweens and teens. By 2014, there were more than 1,850 stores located across the United States.[3]

History

David Schlessinger, founder of Encore Books and Zany Brainy, and Tom Vellios, former CEO of Zany Brainy, founded Five Below on October 4, 2002 in Wayne, Pennsylvania.[6]

On March 18, 2020, Five Below announced the temporary closing all of its stores due to the COVID-19 outbreak.[7] However, by June 6, 2020, 100% of Five Below stores across the United States reopened with plans for new stores to open up.[8] This may account for an increase in foot traffic in 2022-2023, as reported by Unacast, a company that provides location insights. According to Unacast, Five Below experienced "a remarkable 63% year-over-year increase in foot traffic" between Q2 2022 to Q2 2023.[9]

Growth and expansion

As of August 2024, Five Below operates over 1,800[10] stores in 46 states,[11][12][13] employing over 30,000[14] associates along with five distribution centers. It began its outward expansion away from the Philadelphia Metro area by entering additional out-of-state markets: Illinois and Michigan in 2011;[15] Georgia, Kansas, Missouri, and Western Michigan in 2012;[16] Texas in 2013;[17] Tennessee in 2014; Alabama, Florida, and Kentucky[18] in 2015; Louisiana, Minnesota, Oklahoma, West Virginia, and Wisconsin in 2016;[19] California in 2017; and Arkansas in 2018. Five Below in 2019 publicly[20] stated that they could build as many as 2,500 U.S. stores in the future. Arizona, Iowa, and Nebraska were introduced that year. Colorado and Nevada were added in 2020; New Mexico and Utah in 2021. Both Dakotas had opened new stores in 2022. Vermont joined in the next year. Wyoming was added in 2024. 2025 saw the first stores in Oregon & Washington open. Idaho and Montana, the two remaining continental states, will open later.[21]

In September 2014, the company announced a new lease agreement to move its New Castle, Delaware, distribution center to Oldmans Township, New Jersey.[22] The new center would add 275 jobs to the local economy while Delaware would lose 175.[23]

On July 19, 2012, Five Below went public on the NASDAQ at the share price of $17.[24] In 2014, Joel Anderson was appointed CEO.[25] 2016 sales were $1 billion, 2017 sales were $1.3 billion, and 2022 sales reached $3.08 billion.[26][27]

In 2018, Five Below moved its corporate headquarters, now called WowTown,[28] to the Lit Brothers Building in the Market East section of Philadelphia, and has rights to more than 200,000 square feet. WowTown has over 300 employees.[29]

On July 16, 2024, Five Below announced Joel Anderson had resigned from his roles as president and CEO to pursue other interests.[30]

Following his departure, Five Below's shares fell by 25%.[31] On the same day Petco named him as their new CEO.[32]

In July 2024, Chief Operating Officer, Kenneth Bull, was appointed interim president and CEO of Five Below before being replaced by former Forever 21 CEO, Winnie Park, in December 2024.[33][34] Park is a Princeton University graduate with an MBA from Northwestern University. Prior to joining Five Below, she had been the CEO of Forever 21 since January 2022. She also served as the CEO of Paper Source.[35][36]

Store format

The average Five Below store size is 8000 sqft.[37][38] The store carries a wide variety of merchandise at varying low costs.[39]

Philanthropy

In 2006, Five Below partnered with and supported Alex's Lemonade Stand Foundation with the sale of lemonade bracelets, gift cards and pin-ups.[40][41][42]

In 2008, Five Below partnered with St. Jude Children's Research Hospital in the hospital's annual Halloween Promotion.[43]

In 2018, Five Below became an official Toys for Tots sponsor.[44][45]

After Hurricane Sandy in October 2012, Five Below partnered with the American Red Cross and collected over $50,000 through a $1 donation at the register program. The company then doubled all donations resulting in a donation in the total of $100,000.[46]

External links

References

  1. Investor Home fivebelow.com, 2024, retrieved January 19, 2023^
  2. Investor Home fivebelow.com, 2023, retrieved November 27, 2023^
  3. Lally, Terry. Watch Out Below When Five Below Reports Today, Target Price: $30 Seeking Alpha, 4 December 2014^
  4. Five Below, Inc. Full Year 2021 Form 10-K Report cloudfront.net, 29 January 2022, retrieved 2 April 2022^
  5. Fivebelow fivebelow.com, retrieved 2023-10-19^
  6. Zany Brainy execs to open discount chain 23 October 2002, retrieved 28 October 2014^
  7. Five Below Provides COVID-19 Related Business Update Five Below, 18 March 2020^
  8. Five Below Announces Over 75% Stores Reopened Five Below, 29 May 2020^
  9. The Dollar Store Phenomenon: A Look into Foot Traffic and Consumer Behavior in 2023 Unacast.com, retrieved 15 November 2025^
  10. Five Below, Inc. Announces Second Quarter Fiscal 2024 Financial Results Five Below, 2024-08-28, retrieved October 9, 2025^
  11. Thinknum – Financial Analysis Thinknum Financial Data Platform, retrieved 2016-01-25^
  12. Five Below, Inc. Form 10-K for the fiscal year ended February 2, 2019^
  13. All Five Below Locations locations.fivebelow.com, retrieved 2023-10-21^
  14. Employee count Five Below U.S. 2023 Statista, retrieved 2024-10-04^
  15. Five Below, the Five-and-Dime for the iPod Generation, Debuts First Detroit-Area Stores Five Below, 13 July 2011^
  16. Five Below Opens First 7 Stores in Atlanta FiveBelow, 1 June 2012^
  17. Rich Smith. Five Below Expands Into Texas The Motley Fool, 25 January 2013^
  18. Five Below is Coming to London City of London, Kentucky, 2019-05-28, retrieved 2020-01-17^
  19. Staff. Five Below teen discount store opens 3 locations Friday The Tennessean, 19 March 2014^
  20. Demitrios Kalogeropoulos. Five Below Explains How It Could Triple Its Store Count The Motley Fool, 2019-04-02, retrieved 2020-01-17^
  21. George C. Ford. Rapidly growing discount chain Five Below coming to Iowa The Gazette, January 24, 2019, retrieved December 8, 2025^
  22. Five Below Signs Lease for New Distribution Center in Southern New Jersey FiveBelow, 9 September 2014^
  23. Nathans, Aaron. Delaware losing 175 jobs to New Jersey DelawareOnline, 12 September 2014^
  24. Hibah Yousuf. Five Below stock rallies 55% in debut – The Buzz – Investment and Stock Market News CNNMoney, 2012-07-19, retrieved 2020-01-17^
  25. Five Below names COO and retail veteran Joel Anderson as CEO Chain Store Age, retrieved 2020-01-17^
  26. Five Below 2016 Annual Report Five Below Investor Relations, retrieved 25 October 2017^
  27. "2022 Annual Report". Five Below. Retrieved March 29, 2024.^
  28. Suzette Parmley. Five Below moves into 'Wowtown' on Market Street Philadelphia Inquirer, February 16, 2018, retrieved 2020-01-17^
  29. Five Below moves into 'Wowtown' on Market Street^
  30. Ojea, Sabela. Five Below CEO Joel Anderson Steps Down The Wall Street Journal, July 16, 2024, retrieved December 8, 2025^
  31. Petco's New CEO Left Five Below the Day Before Shares Tanked 25% Bloomberg.com, 2024-07-17, retrieved 2024-07-18^
  32. Petco Names Joel Anderson as CEO Following Exit From Five Below^
  33. Five Below's CEO and president steps down amid weak sales ABC News, retrieved 2024-07-18^
  34. Sabela Ojea. Five Below Names Forever 21’s Winnie Park as CEO WSJ, retrieved 2025-03-22^
  35. Five Below Names Retail Veteran Its New CEO Store Brands, 2024-12-04, retrieved 2025-03-22^
  36. Five Below taps Forever 21 boss Winnie Park to be its next CEO^
  37. Five Below to Open Flagship Store on NYC's Fifth Avenue InvestorPlace, 2018-07-13, retrieved 2020-01-17^
  38. Why Five Below Has Succeeded in a Tough Retail Market The Motley Fool, 2019-02-14, retrieved 2020-01-17^
  39. Taylor Telford. Five Below is a wonderland of things no one needs. It's also one of the most successful retailers in America. The Washington Post, 2018-12-28, retrieved 2020-01-17^
  40. Five Below Alex's Lemonade Stand, retrieved December 8, 2025^
  41. Five Below Customers, Employees Raise $345,000 for Alex's Lemonade Stand Foundation AOL, July 14, 2016, retrieved December 8, 2025^
  42. Five Below Alex's Lemonade Stand Foundation for Childhood Cancer, 2011-04-04, retrieved 2020-01-07^
  43. Join Five Below in supporting St. Jude St. Jude Children's Research Hospital, retrieved December 8, 2025^
  44. Lasher, James B. Toys for Tots 2019 Annual Report Marine Toys for Tots Foundation, 2019, retrieved December 8, 2025^
  45. Toys For Tots fivebelow.com, retrieved 2020-01-07^
  46. Nat Berman. 20 Things You Didn't Know About Five Below Money Inc, 2019-03-01, retrieved 2020-01-07^