Five Below, a discount retail chain which has grown quickly by targeting a niche of trend-and-thrift-conscious teens, is preparing to open four new stores in the Pittsburgh area.
The Philadelphia-based retailer recently signed its first Pittsburgh-area lease for a new store at the Waterworks shopping center, which will be the company’s 100th store when it opens in the fall. Three other stores are close to finalizing leases for location also expected to open by the end of the year, said Elizabeth Romaine, the marketing manager for Five Below, which takes its name from its sales strategy of only selling its products for $5.00 or less.

“My favorite way to describe it is as a five and dime for the iPod generation,” said Romaine.

She added that Five Below manages to appeal to both boys and girls, which she said was unique among teen-oriented retailers. Founded by the former execs of the intelligent toy chain Zany Brainy, Five Below’s merchandise mix includes a variety of candy, party supplies, crafts and various media products, such as iPod cases and chargers, DVDs, and video game accessories.

Romaine emphasized that Five Below also works to keep its inventory trendy to its teen audience.

After opening its first store in 2002, the company is opening 20 stores this year and plans to open 30 or 40 next year. She said Five Below plans to eventually open 10 to 15 stores in the Pittsburgh area.

Herky Pollock, the national of the retailer services group for CB Richard Ellis, sees discount retailers of all kinds taking advantage of great opportunities for new stores in a down economy.

“Historically, the challenge with discounters in finding great locations was that the economics were always too expensive to open in prime locations,” he said. “With the market pulling back a bit, there’s now many more affordable locations that discounters can take advantage of. And with the economy being what it is, customers are trading down to shop these discounters in droves.”