Five Below will double its number of Five Beyond store-in-a-store concepts to 280 in 2021, bringing the higher-priced mini-stores to 30% of all locations. Additionally, Five Below plans to open 170 to 180 new stores in 2021.
The retailer experimented with the Five Beyond concept during the last two holiday seasons and decided that the reception was positive enough to expand it year-round. Five Beyond will feature products that crack the retailer’s usual $5 price ceiling, giving Five Below room to experiment and offer a wider variety of products, including items in new categories and collaborations with celebrities and other brands.
“As to product collaborations, we plan to expand the Bugha gaming offerings as well as do more exclusive collaborations in 2021,” said Joel Anderson, CEO of Five Below on a call with investors. “In fact, we kicked off the year with a new partnership focused on the creative aspects of teens’ and tweens’ lives with Andrea Pippins, who’s an illustrator and author. The Pippins collection of products helps kids to imagine, create and shine. Our colorful and inspiring teams have been very popular. We plan to create more opportunities like these in other areas cross our stores.”
Nearly all new Five Below stores and remodels will include a Five Beyond section in the back of the store, while other locations will feature a Wow Wall with a focus on seasonal items. Five Beyond won’t be limited to physical stores; it will feature exclusive online items as well. The main purpose of the new branding is to let Five Below offer products above its usual price point without damaging its flagship brand.
“We’re obviously pretty pleased with it,” said Anderson. “We like where it’s going. But I also am very respectful [of] who our customer is, what our brand stands for. And I want to walk really carefully with not violating that agreement we have with the customer, namely Five the World. And so I think the feedback we’ve gotten from them is they love Five Beyond, they love the value, the wow factor, keep delivering that, but also keep it separate and segregated.”