Discount retailer Five Below said Thursday (Sept.1) that it plans to open a record 200 new stores in 2023 and another 160 this year as it continues its Triple Double growth plan.
The Philadelphia-based chain made the announcement as it released its quarterly earnings, which showed Five Below’s sales growing, although at a lower-than-expected level. Sales in the second quarter rose 3.5% to $669 million, while comparable sales dropped 5.8% due to reductions in tickets and transactions.
Triple Double is Five Below’s plan to triple its number of stores to 3,500 while doubling its sales and earnings over the next four years.
See also: Five Below Is Ready to Pounce on ‘Merchandise and Real Estate Dislocations
“We believe our sales were impacted by both the macro environment, as well as factors specific to Five Below,” CEO Joel Anderson said during a conference call. “On the macro front, on top of lapping an unprecedented year in 2021 due to payments of significant stimulus dollars in 2022, consumers are experiencing inflation levels not seen in decades.”
Anderson said that inflation in areas such as food, fuel and housing is crimping consumer budgets and changing their spending habits. He added that the company is also seeing “a much more promotional retail environment” than in years past due to excess inventory.
“On top of these factors, with COVID restrictions largely lifted, travel and other experience-based sectors increased substantially over last year, which also had an impact on retail traffic and sales in the summer,” he said.
Read more: Dollar General, Dollar Tree Look to Leverage the ‘Great Retail Trade Down’
Last week, rival retailers Dollar General and Dollar Tree both reported increases in same-store sales for the quarter that ended July 29 and July 30, respectively.
PYMNTS research has found that bargain chains and off-brand goods are increasingly replacing premium products over the past few months as prices reached a 40-year high.
Our report “Consumer Inflation Sentiment: July 2022 — Consumers Pull Back and Prepare for the Long Haul,” found that 70% of retail shoppers had cut back on nonessential goods, and more than half (53%) shopped at bargain retailers.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More