Toys ‘R’ Us is gone. This discount toy store fills the void

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Toys “R” Us filed for bankruptcy in 2017 and closed all of its stores, leaving an opening for rivals like discount toy chain Five Below to fill the void. MacyFive Below Locations, as the name suggests, sells most of its toys, games, room decor, and tech accessories for less than $5. The company said Wednesday it plans to open 1,000 new stores over the next three years. The chain has opened hundreds of stores each year for the past few years to fill the void left by Toys “R” Us and appeal to discount-seeking shoppers. Five Below, which targets teens and tweens as its primary customers and currently has around 1,200 locations, sees an opportunity to add 2,500 new stores by 2030. The chain’s latest growth spurt also reflects the boom more important discount stores. The sector has been somewhat immune to the rise of online shopping and other challenges plaguing many brick-and-mortar retailers. Last year, for example, three-dollar chain stores accounted for almost half of all new stores opened in the United States. clothing stores such as TJ Maxx and Burlington, discount grocers including Aldi and others also open hundreds of new stores each year. regulatory filings. His slogan: “Let Go & Have Fun”. Shops have low shelves, colorful signs, pop music played over loudspeakers and wheelbarrows, and oil drums full of goods. Sporting goods, games, toys, tech gadgets, books, electronic accessories, and arts and crafts account for about half of Five Below’s approximately $3 billion in annual sales. T-shirts, beauty products and homewares account for about 30%, while seasonal and party items, greeting cards, candies and snacks make up the rest. to offer home delivery. The company seeks to differentiate itself from competitors like dollar stores, big-box chains and Amazon by focusing on appealing to a targeted slice of shoppers. “We monitor trends in the ever-changing tween and teen markets and are able to identify and respond quickly,” the company said in its filings. “Our price ranges allow tweens and teens to shop from independently, often using their own money.”However, despite Five Below’s new store initiative and a 3.4% increase in comparable sales in its latest quarter, investors were not impressed: The chain’s shares fell about 5% on Wednesday.Despite the drop, Five Below still has a “good long-term outlook,” said Telsey Advisory Group analyst Joseph Feldman.

Toys “R” Us filed for bankruptcy in 2017 and closed all of its stores, leaving an opening for rivals like discount toy chain Five Below to fill the void.

Related video above: Toys “R” Us returns with partnership at 400 Macy’s locations

Five Below, as the name suggests, sells most of its toys, games, room decor, and tech accessories for less than $5. The company said Wednesday it plans to open 1,000 new stores over the next three years.

The chain has opened hundreds of stores each year for the past few years to fill the void left by Toys “R” Us and appeal to discount-seeking shoppers. Five Below, which targets teens and tweens as its primary customers and currently has around 1,200 locations, sees an opportunity to add 2,500 new stores by 2030.

Daniel Acker/Bloomberg via Getty Images

Shoppers place purchases in a vehicle outside a Five Below Inc. store in Bloomington, Illinois, U.S., Wednesday, July 25, 2018.

The chain’s latest growth spurt also reflects the larger boom in discount stores. The sector has been somewhat immune to the rise of online shopping and other challenges plaguing many brick-and-mortar retailers.

Last year, for example, three-dollar chain stores accounted for almost half of all new stores opened in the United States.

Discount clothing outlets like TJ Maxx and Burlington, discount grocers like Aldi and others are also opening hundreds of new stores every year.

Attracting teens and tweens

Five Below’s locations are relatively small, and the chain describes itself as a “high-energy retail concept” in regulatory filings. His slogan: “Let go and have fun”.

Shops have low shelves, colorful signs, pop music played over loudspeakers and wheelbarrows, and oil drums full of goods.

Sporting goods, games, toys, tech gadgets, books, electronic accessories, and arts and crafts account for about half of Five Below’s approximately $3 billion in annual sales. T-shirts, beauty products and homewares account for about 30%, while seasonal and party items, greeting cards, candies and snacks make up the rest.

Five Below recently branched out into new product areas, such as esports, and partnered with Instacart to offer door-to-door delivery.

The company seeks to differentiate itself from competitors like dollar stores, big box chains and Amazon by focusing on appealing to a targeted slice of shoppers.

“We monitor trends in the ever-changing tween and teen markets and are able to identify and respond quickly,” the company said in filings. “Our pricing tiers allow tweens and teens to shop independently, often with their own money.”

However, despite Five Below’s new store initiative and a 3.4% increase in comparable sales in its latest quarter, investors were not impressed: the chain’s shares fell about 5 % Wednesday.

Despite the drop, Five Below still has “good long-term prospects,” said Telsey Advisory Group analyst Joseph Feldman.

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