Five Below Achieves Nearly 14% Sales Growth While Acquiring Tuesday Morning Leases — Retail Bum

Discount retailer Five Below is looking to expand its physical presence by seizing the opportunity presented by the failure of other retailers.

As part of its growth strategy, Five Below recently acquired 16 leases from Tuesday Morning after the retailer confirmed last month that it would be closing its business permanently following its Chapter 11 filing in February 2023. In addition, the retailer has acquired two leases from Party City, which has also filed for bankruptcy.

During the retailer’s earnings call on Thursday, June 1, 2023, CEO Joel Anderson stated that many previously occupied Tuesday Morning spaces are slightly larger than the company’s standard footprint of 10,000 square feet. This additional space presents an opportunity for Five Below to potentially expand its Five Beyond concept into larger physical locations, where it can sell products above the company’s usual $5 price point.

Anderson said Five Below has successfully transformed approximately 250 stores into the new prototype during the first quarter, and the company remains on schedule to convert a total of 400 stores to the Five Beyond format by the end of the year.