Discount retailer holds grand opening in Visalia, will hold grand opening in Bakersfield next month, has plans to open two more in Fresno
VISALIA – Discount retailers continue to thrive in the Central Valley and they don’t have to carry items less than $1, it just needs to be under $5.
Five Below, a store promising tweens and teens items ranging from art and music to sports and candy all for $5 or less, is finding success among young shoppers in the Central Valley. Just last month, the discount chain held its grand opening at its Visalia location, 3729 S. Mooney Blvd. in Visalia, in the former home of the Patio Place. The Philadelphia-based retailer also has plans to open two locations in Fresno in the next few months and has already planned a grand opening for a Bakersfield location on May 24. Attempts to contact the company were not returned.
Stores average about 8,000 to 9,000 square feet and offer a bargain treasure hunt type of shopping experience. They sum up their products into eight words: Style, Room, Play, Tech, Create, Party, Candy and New & Now. Five Below describes their store as “the coolest & trendiest stuff out there, at a price that cannot be beat.” Their strategy seems to be working. While other chains are struggling to keep the doors open at the stores they have, Five Below is an up and coming player in the retail market. The company opened 125 new stores in 2018 finishing the year with 46.1% increase in net income totaling $150 million. Net sales increased by 22% pushing the retailer over the $1 billion mark.
“Our strong fourth quarter performance capped off a great year for Five Below,” said Joel Anderson, president and CEO of Five Below. “Our 2018 store openings are on track to be another record class with first year average unit volumes expected to be over $2 million. For the year, we delivered comparable sales growth of 3.9% on top of last year’s record results. We saw broad-based strength across our worlds as our incredible, trend-right value offering and fun in-store experience drove both new and existing customers to Five Below.”
FiveBelow.com boasts that the retailer has more than 750 stores in 33 states and is planning to open an additional 1,750 stores in the next few years, 35 of them in the first quarter of 2019 alone. For the first quarter of 2019, which the company says began on Feb. 3, Five Below estimates its net sales to be between $361 million and $366 million, its net income to be in the range of $18.0 million to $19.7 million, with common stock between $0.32 to $0.35 on approximately 56.4 million shares. By the end of 2019, Five Below expects to open another 150 stores and estimates its net sales will top $1 billion, that its net income will double, and that its share prices will increase nearly tenfold.
“As we look ahead to 2019, we are focused on elevating our customer experience, delivering even better WOW products, and further enhancing our supply chain as we innovate across the organization,” Anderson stated. “We are excited to continue our high growth with a record number of new store openings and remain confident in our 20/20 through 2020 goals and our ability to reach our 2,500 plus U.S. store potential.”