Five Beyond grew out of tests of the discounter’s “Ten Below” concept. Analysts with Telsey Advisory Group said in a research note that Five Beyond “provides the flexibility to widen the assortment while still offering value at higher prices.”
The concept creates something of a loophole in Five Below’s under-$5 offer to customers. It gives the retailer flexibility to both meet customer demand for products, like electronics, that might not otherwise fall within Five Below’s price promise as well as expand the company’s margins where it sees opportunities to do so.
“The emergence of Five Beyond from our Ten Below tests is a great example how we pivoted to play offense,” Anderson said. “The customer has responded positively to our new Five Beyond assortment, which is filled with fresh, amazing value items and new categories to our customers.”Retail Dive