Five Below, the popular discount chain known for its budget-friendly products, is continuing its impressive expansion. The company opened over 200 stores in 2024, and they’re not slowing down anytime soon. As of this year, 55 new stores have already opened across 20 states, with another 30 expected to open this summer alone. By the end of 2025, Five Below plans to add 150 more stores to its network, bringing the total number of locations close to 2,000 across the United States.
Strong Growth in a Competitive Market
Currently, Five Below has over 1,800 locations in the U.S., a significant milestone. While it’s still behind Dollar Tree, which operates more than 8,700 stores, Five Below is quickly becoming a favorite among budget-conscious shoppers. Some customers have even pointed out that Five Below’s prices are often lower than Dollar Tree’s, with the chain offering a wide range of affordable finds, according to a recent Facebook reel.
During a recent earnings call, CEO Winnie Park shared that the company had a strong first quarter and was seeing a 6.2% increase in transactions. She also emphasized that Five Below’s focus on providing “fun and extreme value” remains central to its success.
Facing Tariffs and Supply Chain Challenges
Like many other retailers, Five Below is also navigating the challenges posed by global tariffs. In response to trade tensions between the United States and China, the company is taking steps to reduce the impact of these tariffs. Park confirmed that Five Below plans to reduce its reliance on Chinese imports by about 10% for the rest of 2025, aiming to stay “nimble and flexible” as the situation evolves. This comes after a period of uncertainty, when Five Below paused orders from China due to the threat of a 245% tariff.
The decision to pause Chinese imports was a proactive move to ensure the company could continue to offer trend-right products at attractive prices. Customers had mixed reactions to this news, with some wondering what kind of products Five Below would carry without Chinese imports, while others joked about the potential for higher prices or the brand rebranding as “5 Above.”
Product Innovations and Customer Experience Updates
Aside from its growth and expansion, Five Below is also making moves to improve the in-store experience. The company has made updates to its checkout process after customer complaints about awkward positioning. Additionally, the brand has introduced new products, including a $5 version of shoes nearly identical to Birkenstocks but at a fraction of the price, making it even more appealing to budget-conscious shoppers.
As Five Below continues to grow, it remains committed to providing value and fun, offering customers a wide range of affordable products. Whether it’s new stores, product innovations, or improvements to the shopping experience, Five Below is poised to continue its rise in the retail world.
