One discount retailer is gaining ground while others shut down stores across the country. Five Below, often called "cheaper than Dollar Tree," plans to open 150 new stores this year.
The announcement came during its fourth quarter earnings call, where the company reported a 9 percent sales jump, beating Wall Street expectations. With 1,800 stores across 45 states, the expansion will grow its footprint by 8.5 percent.
Not all new locations have been revealed, but at least eight are listed on the company’s site, including New Castle, Pennsylvania; Baltimore, Maryland; and Fort Mitchell, Kentucky. CFO Kristy Chapman told investors that 50 stores will open by March 31.
Still, challenges loom. Many of Five Below’s items — mostly priced under $5 — are imported, with 60 percent coming from China. If President Trump’s proposed tariffs are enacted, those costs could rise and be passed on to shoppers already burdened by inflation.
The company has already confirmed some items under $5 will see price increases. Despite that, new CEO Winie Park, who took over in December, remains committed to the brand’s core audience. “Our vision is to be the destination for kids from elementary through high school and beyond, as well as mom and dad,” Park said. “By focusing on the kids first, we have a unique opportunity to vote a relationship with our customers from a young age and be a go-to resource as they grow and become parents themselves.”
Park said stores will also feature a “trending” section with “fresh and relevant” deals at $5 or less, and a few higher-priced items. Meanwhile, Five Below’s growth contrasts sharply with Dollar General, which is set to close nearly 100 stores soon, along with 45 more under its pOpshelf brand.
“Many of our customers report they only have enough money for basic essentials, with some noting that they have had to sacrifice even on the necessities,” said Dollar General CEO Todd Vasos. The closures reflect a broader retail shake-up, with experts warning that up to 15,000 storefronts could shut down this year—double the 7,000 that closed in 2024. Macy’s, Party City, and Big Lots are among the chains already downsizing amid shifting consumer habits.