Wednesday, November 2, 2022

Five Below to expand in Aspen Hill

Five Below
will get bigger by next year at 13661 Connecticut Avenue at the Aspen Hill Shopping Center. The discount store plans to expand into a vacant adjacent storefront in the coming months. This is not surprising, as Five Below has benefited from its market position as inflation squeezes businesses and consumers alike - so far.

Unlike dollar stores, Five Below is already operating at a modestly higher price point. That has meant it hasn't had to take as big of a loss on its profit margins, or irk customers by suddenly trying to charge above the price limit in its name, like its dollar store competitors. In fact, Five Below has announced an ambitious growth plan that will triple its store count by the end of this decade. 

But there are signs that persistent inflation may be finally catching up to the company. Five Below has announced plans to launch a separate store concept called Five Beyond, with items above $5. It says that a majority of its existing Five Below stores will eventually become Five Beyond stores. At higher price points, it will have to start competing more directly with Walmart and Target.

Some observers are skeptical about Five Below's plans. Consumer spending is trending downward in recent months, and the chain's earnings didn't match expectations in the last quarter. 

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