I went to Five Below for the first time and it was immediately clear why Gen Z loves it | Business Insider India (2024)

FAQs

Why is Five Below so cheap? ›

Five Below keeps its prices low by controlling costs efficiently. Their stores are relatively small, averaging about 9,000 square feet, and they're often located in existing shopping centers. This helps keep overhead low.

Verbal Recognition > Non-Verbal Recognition

In a 2018 Deloitte survey, 54% of employees said they preferred a verbal thank-you, and 31% preferred a written thank-you when recognized for day-to-day accomplishments. An act of appreciation is only meaningful when the words are genuine.

During 2022, Five Below sourced from about 1,000 vendors, with 60% of purchases coming from domestic vendors and no single vendor accounting for more than 5% of spend, according to the company's 10-K. The retailer says its low-cost sourcing and operating model helps it meet its $5 price target for products.

The obvious economic explanation for Five Below's shift here is that by charging 10 bucks for products that are still pretty cheap to make, it's going to earn more profit. But this isn't exactly a move born of desperation, either.

Recognition comes in various forms, such as verbal praise, awards, or public acknowledgment. Appreciation can also be shown through small gestures like a simple "thank you" note. Identify the type of recognition and appreciation that resonates most with you to feel valued.

Whether you're looking for cute home décor, candy and food, or make-up, you'll most likely save a bundle at Five Below. Just remember that not all products are the highest quality so do your research or, better yet, shop in stores so you can see exactly what you're getting before you buy.

Five Below has a consensus rating of Moderate Buy which is based on 7 buy ratings, 14 hold ratings and 0 sell ratings. The average price target for Five Below is $113.00. This is based on 21 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

Five Below, Inc. is an American chain of specialty discount stores that prices most of its products at $5 or less, plus a smaller assortment of products priced up to $25. Founded by Tom Vellios and David Schlessinger and headquartered in Philadelphia, Pennsylvania, the chain is aimed at tweens and teens.

Is Five Below ethical? ›

We are committed to upholding ethical sourcing practices globally, to protect the lives, freedom and well-being of all individuals who take part in manufacturing our products. Our vendor requirements outline zero tolerance policies, including forced and bonded labour.