Specialty discount retailer Five Below has unveiled plans to expand through Simon’s retail portfolio, including its Premium Outlets.
The expansion with Simon will encompass a range of products geared toward tweens, teens and beyond, according to a Thursday (May 18) press release. Five Below aims to establish its presence in at least seven separate Premium Outlets, per the release, with stores opening this spring and summer.
Planned Premium Outlet locations include Albertville Premium Outlets, Pleasant Prairie Premium Outlets, Johnson Creek Premium Outlets, Gaffney Outlet Marketplace, Indiana Premium Outlets, Pismo Beach Premium Outlets and Pocono Premium Outlets.
“The expansion of our relationship with Five Below comes as a result of the success of the 21 stores that are currently in our Malls and Mills properties and is a natural extension of our commitment to growth,” Simon Property Group Senior Vice President of Leasing Paul Ajdaharian said in the release.
Five Below will also open a location at Great Mall in Milpitas, Calif., and at Miller Hill Mall in Duluth, Minn., this year. Additionally, the company is undergoing a complete renovation at Arundel Mills in Hanover, Md.
“Expansion to 3,500-plus stores is a key strategic pillar of our vision for growth, and our relationship with Simon is core to continuing our national expansion efforts,” Five Below Chief Retail Officer George Hill said in the announcement.
During its Q1 2023 earnings call, Five Below said it would be looking to grow its retail presence, following a promising quarter.
“New stores, they remain a key growth engine,” Five Below President and Chief Executive Officer Joel D. Anderson said during the call. “We have refocused resources to accelerate our store growth and reach a milestone of 200 new stores this year.”
That earnings report highlighted the discount retailer’s Five Beyond concept, which offers products priced above $5 while still maintaining affordability compared to market averages. Initially introduced as a store-within-a-store, the Five Beyond concept has been successfully implemented in around 20% of Five Below’s fleet of 250 stores. The retailer plans to convert an additional 400 stores into the Five Beyond concept.
During the earnings call, Anderson noted that Five Below’s expansion into new areas will be strongly influenced by its Five Beyond concept.
“We have learned a lot in our journey on Five Beyond — what types of items sell, what doesn’t sell, and what kind of quantities to buy,” said Anderson.
See also: Five Below Courts High Earners With Five Beyond
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