Where Does Five Below Get Their Merchandise? [Answered] 2024

Five Below, the popular retail chain that offers an assortment of products, all priced at $5 or below, has become a household name in the United States.

Shoppers often wonder where Five Below gets its merchandise to maintain such competitive pricing while offering a wide range of products.

In this article, we will delve into the intricacies of Five Below’s sourcing strategy, distribution channels, and the factors that have contributed to its remarkable success in the USA.

Where Does Five Below Get Their Merchandise

Where Does Five Below Get Their Merchandise?

The Concept of Five Below

Five Below’s unique selling point is in its name itself – everything in the store is priced at $5 or less. It’s a one-stop shop for budget-conscious shoppers, offering a variety of products, including toys, games, electronics, beauty products, clothing, and more. This concept has resonated well with consumers, making Five Below a go-to destination for affordable shopping.

Sourcing Strategy of Five Below

Five Below employs a diverse sourcing strategy to stock its stores with a wide array of merchandise. Their strategy is divided into three main categories:

  1. Local Suppliers: A significant portion of Five Below’s merchandise comes from local suppliers. These local suppliers often provide unique and trendy items that cater to the tastes and preferences of the specific regions in which Five Below stores are located.
  2. National Suppliers: National suppliers play a crucial role in maintaining consistent merchandise across all Five Below stores. They provide products that have a broader appeal and can be found in most locations.
  3. Global Suppliers: Global suppliers help Five Below source items that have a universal appeal and are often produced at a larger scale, ensuring that the company can meet the demands of its vast customer base.

Distribution Centers

Five Below operates several distribution centers throughout the United States to efficiently manage its supply chain and deliver products to its stores.

  • Regional Distribution: The regional distribution model allows Five Below to keep products in proximity to their stores, ensuring that shelves are well-stocked and replenished quickly.
  • Logistics and Supply Chain: Five Below has a robust logistics and supply chain network to streamline the flow of products from suppliers to stores. This efficiency is a crucial part of their cost-effective strategy.

Quality Control

Five Below maintains stringent quality control measures to ensure that the products they offer meet their standards. They work closely with suppliers to maintain the quality of merchandise and continually seek ways to improve.

Pricing Strategy

Five Below’s pricing strategy is simple but effective. By pricing everything at $5 or below, they create a unique shopping experience for customers and make budgeting easy.

Five Below’s Success in the USA

The combination of a unique pricing strategy, diverse sourcing, efficient distribution, and quality control has made Five Below a success story in the USA. Shoppers are drawn to its stores for their wide variety of budget-friendly products.

Challenges Faced by Five Below

Despite its success, Five Below faces its share of challenges, including competition from other discount retailers and the need to adapt to changing market trends and consumer preferences.

Expansion Plans

Five Below continues to expand its footprint in the United States, opening new stores in various regions. This expansion is a testament to the company’s strong position in the market.

Customer Experience

The affordability and variety of products at Five Below contribute to a positive shopping experience. The company focuses on engaging with customers and creating a fun and dynamic in-store atmosphere.


Five Below’s unique concept of offering products at $5 or less, combined with a robust sourcing strategy, efficient distribution, quality control, and an engaging customer experience, has made it a favorite among budget-conscious shoppers in the USA.

Frequently Asked Questions

Can I find unique items at Five Below?

Yes, many local suppliers provide unique and trendy products that you won’t find in traditional retail stores.

How does Five Below maintain its low prices?

Five Below’s efficient sourcing and distribution, combined with a $5 or below pricing strategy, help them keep prices low.

Where can I find a Five Below store?

You can find Five Below stores in various locations across the United States. Check their website for the nearest store.

Does Five Below offer online shopping?

Yes, Five Below offers online shopping for your convenience.

Is Five Below planning to expand internationally?

While their focus has primarily been on the USA, Five Below may consider international expansion in the future.

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