3 Major New Five Below Shopping Changes Happening Now

At a time when the retail sector can look grim at best for many companies, Five Below is painting a rosier picture. During a Dec. 3 earnings report, the bargain retailer said it was on track to surpass its initial projected sales for the year, revising its projection from $4.62 billion to $4.65 billion, per The Wall Street Journal.

The company is a rare bright spot in a sector where even many of the most prominent players are closing stores and pivoting to retain business. But the latest upswing for Five Below comes as the retailer makes some significant changes to its shopping experience that you might notice during your next visit.

RELATED: Dollar General Is Opening 450 New Stores—Everything We Know So Far.

1. The store is focusing on younger customers.

Ever since a new CEO took over the retailer last year, Five Below has begun a bold new focus on a different set of clientele. Top brass now say they are paying attention to what younger shoppers are buying and focusing on bringing in products that appeal to Millennials, Gen Z, and Gen Alpha customers, per The Wall Street Journal.

It’s also not just about appealing to these shoppers with what’s on the shelf. Leadership has also focused on more conscientious pricing, which includes both providing plenty of items in its well-established bargain territory and finding pricier items that are still a great buy.

“Value is not just about $5 and below, but ensuring we pack value into $7, $10, and $15+ items,” Five Below CEO Winnie Park told The Wall Street Journal.

2. They’re adding more “small luxuries at low price points.”

It’s no secret that major retailers (including Target) have seen customers begin to pull back on spending in the face of increasing inflation and other economic woes. But while Five Below may not have the wide breadth of products that competitors like Walmart can rest on, they are realizing that people are still allowing themselves at least some kind of discretionary spending for treats.

So, what’s the secret? Five Below’s focus on “small luxuries” that fit within shoppers’ budgets appears to be working in an economy where larger ticket items may no longer be feasible, Market Beat reports. In many cases, a smaller price tag on a non-essential item can help customers justify the “splurge” at the cash register.

Part of this can be seen on social media, where eager shoppers search Five Below and other bargain stores for “dupes” of high-end products that cost a fraction of the name-brand. Everything from beauty products to fashion items is fair game, including one influencer who recently touted a $15 lookalike of a Hermés Birkin handbag at the store—making it roughly 0.11 percent of the cost of the luxury product.

RELATED: 4 Costco Shopping Changes Happening This Month.

3. More stores are opening soon.

With things looking up, Five Below is also expanding its brick-and-mortar footprint. In October, the company said it planned to open eight more stores, according to Retail Dive. The new locations will all be across Washington and Oregon, marking the retailer’s first-ever push into the Pacific Northwest.

The move comes on the heels of the company opening 32 stores in the previous quarter.

“In terms of new stores, we’ve been really pleased with the openings this year,” Park told analysts on a recent earnings call. “And we certainly have a lot of white space. We believe there’s still more white space in the market, especially as we enter new markets later this year, like the Pacific Northwest.”