No. of Recommendations: 1
Retail, except for with Denny, is not something we discuss much other than Shopify and Amazon. Anyone have any experience with Five Below?

I don't but I read the description at Yahoo

Description

Five Below, Inc. operates as a specialty value retailer in the United States. It offers accessories, including novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and T-shirts, as well as beauty products comprising nail polish, lip gloss, fragrance, and branded cosmetics; and items used to complete and personalize living space, including glitter lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, and related items, as well as provides storage options for the customers room. The company also provides sport balls; team sports merchandise and fitness accessories, such as hand weights, jump ropes, and gym balls; games, including name brand board games, puzzles, collectibles, and toys; and pool, beach and outdoor toys, games, and accessories. In addition, it offers accessories, such as cases, chargers, headphones, and other related items for cell phones, tablet, audio, and computers; books, video games, and DVDs; craft activity kits; arts and crafts supplies that consist of crayons, markers, and stickers; and trend-right items for school comprising backpacks, fashion notebooks and journals, novelty pens and pencils, locker accessories, and everyday name brand items. Further, the company provides party goods, decorations, gag gifts, and greeting cards, as well as every day and special occasion merchandise products; assortment of classic and novelty candy bars, movie-size box candy, seasonal-related candy, and gum and snack food; chilled drinks through coolers; and seasonally-specific items used to celebrate and decorate for events. It primarily serves teen and pre-teen customers. It operates 750 stores. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in August 2002. Five Below, Inc. was founded in 2002 and is headquartered in Philadelphia, Pennsylvania.


Texmex says: "My calculations suggested potential for future stock appreciation was minimal after considering store count and comps growth."

Retail grows mostly by expanding stores. Each category of retail has a top limit of stores when they start cannibalizing neighbouring stores. My WAG is that Five Below's limit is around 800 stores and maybe 1000 if they cater to lower income customers which the name suggests. They already have 750 stores.

I still like Ross Stores (ROST) but have no position just now. 25% average CAGR over the past 20 years.

https://invest.kleinnet.com/bmw1/stats20/ROST.html

Denny Schlesinger
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