SWOT or Porter's Five Forces Model
Five Below is a leading high-growth value retailer offering trend-right, high-quality products loved by
tweens, teens, and beyond. Founded in 2002, the company has over 1200 stores in forty states with its
headquarters in Philadelphia, Pennsylvania. After twenty years of being in business, Five Below has been
able to stay true to its purpose of creating an amazing experience where customers can Let Go & Have
Fun with prices so low, they can always say Yes! to the newest, coolest stuff (Annual reports & proxy
statements 2021). Top brands that you can find when visiting any of these stores include Disney,
Nickelodeon, Marvel, Hershey's, and many more. An important benefit of the company's unique selling
proposition is its rapid growth. Thanks to its robust business strategies, Five Below seems well poised for
growth. Keeping their focus on providing trend-right products, improving supply-chain operations,
strengthening digital capabilities, and remodeling stores will continue to yield solid results for the firm.
For the current fiscal year, sales presently stand at $2.98 billion, indicating an increase of 4.7% from the
prior year. According to Zach's Consensus Estimate, Five Below's sales and earnings per share (EPS) are
currently pegged at $3.56 billion and $5.58 each for the fiscal year 2023. Five Below can continue to
grow these revenues through the utilization of multiple marketing channels. Through print ads, TV ads,
and social media, Five Below can reach its target audience in other areas. Most of the firm's new
customers come in to shop by word of mouth or from visiting a store in a different location.
Mastering the art of sourcing merchandise cheaply and selling it cheaply will also continue to benefit this
company. Being able to consistently sell merchandise for $5 or less is not easy for a lot of retailers to do.
However, Five Below has been able to effortlessly do this by cutting all the costs out of the supply chain
to sell the product as close to the source price as possible. For example, if the company wants to sell
basketballs, they may go as far as deflating them so that there is less weight and packaging during