Philadelphia-based Five Below prices are creeping past $5, as the value retailer has recently added more items that surpass that threshold, with some priced at $20 or more, writes Jennifer Williams for The Wall Street Journal.
This is a significant shift for the company, whose name reflects its commitment to selling toys, games, party decorations, and other items for $5 or less.
Now under new management, the company has simplified its pricing and shifted marketing efforts toward younger shoppers. Some individual items now cost $6, $7, or $10, and a Halloween skeleton were recently selling for $35.
“We believe it’s all about relative value,” said Chief Financial Officer Dan Sullivan. “And so we have the opportunity to go above $5 as long as we jam that item with value.”
The pricing adjustments have been introduced after Winnie Park was named Chief Executive more than a year ago. Store offerings now have fewer price points than the previous nearly 80, with most rounded to whole dollars.
Last year, prices rose about 20 percent, partly to offset tariffs, since the company imports 55 percent of its products from China.
Read more about Five Below and its recent pricing shift in The Wall Street Journal.
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