Five Below’s cost edge should facilitate economic profits for at least the next decade.
Five Below is an off-priced retailer that sells nonessential merchandise (gadgets, toys, party supplies) priced from $1 to $5 with a target demographic of teens and preteens. Given the low-priced fare, its merchandise is considered better insulated against e-commerce threats and has given the firm confidence to rapidly expand its units, which reside in high-traffic (highly visible) shopping centers with well-known anchor tenants. Over the past four years, Five Below has expanded its units from a...
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