Five Below: Store Conversion ROI, Stocking & Comparable Sales
Former District Manager at Five Below
inpractise.com/articles/five-below-five-beyond-conversion-stocking-and-comparable-sales
Former District Manager at Five Below
The executive has over 20 years of experience in Retail. The executive spent over a decade at Five Below and oversaw a dozen stores during his tenure.
Interview Transcript
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For those who have never visited a Five Below store, could you describe what a typical store looks like? Please include details about the concept, size, categories, number of SKUs, and any other relevant details.
Five Below is divided into nine sections, each with a different focus. The main emphasis is on candy and tech, which are probably the two largest sections. The candy section, in particular, has a vast array of SKUs. I couldn't tell you the exact number of SKUs in the store, as there are so many and new items are constantly being added. I would estimate there are around 5,000 to 6,000 SKUs, but that's just a guess.
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They have shifted the responsibility of ordering from the store manager to someone else.
Another issue arose when we transitioned from five managers ordering candy to the replenishment system. The system didn't account for candy that hadn't arrived at the store yet, so it wouldn't order more. I know visiting stores with my bosses and my boss's bosses, it was the biggest concern in Five Below, and it still is, from what I can understand, because they just can't keep it in stock. This led to a significant shortage of candy.
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Was this an IT problem or a structural issue?
They've been working on a new program to address this for about two years now. However, as per my conversation with another district manager last week, it's still not operational. This is particularly problematic for candy, given the number of SKUs. If the system says you have 12 of an item and you have none, the store can't adjust the inventory to zero. This prevents the replenishment team at the head office from allocating more of that candy bar or whatever the item may be.
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