Five Below
Five Below, Inc. is a rapidly growing discount retail chain headquartered in Philadelphia. Founded in 2002 by David Schlessinger and Tom Vellios, the company operates over 1,400 stores across the United States, selling trend-focused merchandise primarily priced at $5 or below (with some items now up to $10). Five Below targets tweens, teens, and young adults with a fun, energetic shopping experience featuring candy, toys, tech accessories, room decor, and lifestyle products. The company's Philadelphia headquarters in Center City reflects its urban, youthful brand identity and represents one of the city's major retail success stories.[1]
History
[edit | edit source]Origins (2002)
[edit | edit source]Five Below was founded in 2002:
Beginning:
- David Schlessinger and Tom Vellios co-founded
- First store opened in Wayne, PA
- Philadelphia suburbs origin
- Tween/teen focus
Concept Development
[edit | edit source]Business model:
- $5 and below price point
- Trend-driven merchandise
- Fun shopping experience
- Rapid inventory turnover
Growth
[edit | edit source]Expansion:
- Suburban Philadelphia initially
- East Coast expansion
- National footprint developed
- Hundreds of stores
Going Public (2012)
[edit | edit source]IPO:
- Nasdaq listing
- Capital for expansion
- Investor interest
- Continued growth
Rapid Expansion
[edit | edit source]Recent years:
- 1,400+ stores
- Nationwide presence
- New store openings
- Market penetration
Business Model
[edit | edit source]Price Point
[edit | edit source]Value positioning:
- Originally $5 and below
- Added "Five Beyond" section (up to $10)
- Extreme value perception
- Impulse purchasing
Target Customer
[edit | edit source]Demographics:
- Tweens (8-12)
- Teens
- Young adults
- Parents shopping for kids
Store Experience
[edit | edit source]Environment:
- Bright, energetic
- Music playing
- Fun displays
- Easy navigation
Product Categories
[edit | edit source]Eight "worlds":
- Style (room decor, accessories)
- Room (dorm, bedroom items)
- Sports
- Tech
- Create (arts, crafts)
- Party
- Candy
- Now (seasonal)
Operations
[edit | edit source]Store Count
[edit | edit source]Expansion:
- 1,400+ stores
- 43 states
- Continued new openings
- Long runway for growth
Distribution
[edit | edit source]Logistics:
- Distribution centers
- Rapid replenishment
- Vendor partnerships
- Supply chain focus
Real Estate
[edit | edit source]Locations:
- Strip centers
- Power centers
- Lifestyle centers
- Suburban focus
Philadelphia Headquarters
[edit | edit source]Market Street Location
[edit | edit source]Corporate base:
- 701 Market Street
- Center City Philadelphia
- Modern offices
- Urban location
Employment
[edit | edit source]Jobs:
- Corporate headquarters staff
- Merchandising, marketing
- Technology, finance
- Store operations support
Philadelphia Connection
[edit | edit source]Local importance:
- Founded in Philadelphia area
- Headquarters commitment
- Local hiring
- Economic impact
Competition
[edit | edit source]Industry Rivals
[edit | edit source]Competitors:
- Dollar General, Dollar Tree
- Target (for some products)
- Amazon
- Other discount retailers
Differentiation
[edit | edit source]Unique positioning:
- Trend focus vs. basics
- Younger demographic
- Fun experience
- Curated selection
Financial Performance
[edit | edit source]Growth
[edit | edit source]Metrics:
- $3+ billion revenue
- Consistent comparable sales growth
- New store expansion
- Profitability
Stock Performance
[edit | edit source]Market:
- Nasdaq: FIVE
- Growth stock
- Investor interest
- Market cap growth
Culture
[edit | edit source]Brand Identity
[edit | edit source]Personality:
- Fun, energetic
- Trend-forward
- Youth-focused
- Value-conscious
Company Culture
[edit | edit source]Workplace:
- Dynamic environment
- Retail entrepreneurship
- Growth opportunities
- Philadelphia-based
"Let Go and Have Fun"
[edit | edit source]Tagline:
- Brand essence
- Customer experience
- Marketing theme
- Store environment
Challenges
[edit | edit source]Competition
[edit | edit source]Market pressures:
- E-commerce
- Other discounters
- Retail consolidation
- Market saturation concerns
Inflation
[edit | edit source]Cost pressures:
- Maintaining price point
- Vendor costs
- Freight costs
- Margin management
Expansion Execution
[edit | edit source]Growth management:
- New store performance
- Market selection
- Real estate challenges
- Operational scaling
Future
[edit | edit source]Strategy
[edit | edit source]Growth plan:
- Continue store expansion
- 3,500+ store potential
- Five Beyond expansion
- Digital development
Innovation
[edit | edit source]Evolution:
- Product development
- Store formats
- Technology integration
- Customer engagement
See Also
[edit | edit source]References
[edit | edit source]- ↑ "Five Below". Five Below. Retrieved December 31, 2025