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
Interview Transcript
This is a snippet of the transcript, sign up to read more.
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.
This is a snippet of the transcript, sign up to read more.
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.
This is a snippet of the transcript, sign up to read more.
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.
This is a snippet of the transcript, sign up to read more.
Copyright Notice
This document may not be reproduced, distributed, or transmitted in any form or by any means including resale of any part, unauthorised distribution to a third party or other electronic methods, without the prior written permission of IP 1 Ltd.
IP 1 Ltd, trading as In Practise (herein referred to as "IP") is a company registered in England and Wales and is not a registered investment advisor or broker-dealer, and is not licensed nor qualified to provide investment advice.
In Practise reserves all copyright, intellectual and other property rights in the Content. The information published in this transcript (“Content”) is for information purposes only and should not be used as the sole basis for making any investment decision. Information provided by IP is to be used as an educational tool and nothing in this Content shall be construed as an offer, recommendation or solicitation regarding any financial product, service or management of investments or securities. The views of the executive expressed in the Content are those of the expert and they are not endorsed by, nor do they represent the opinion of In Practise. In Practise makes no representations and accepts no liability for the Content or for any errors, omissions, or inaccuracies will in no way be held liable for any potential or actual violations of laws, including without limitation any securities laws, based on Information sent to you by In Practise.
© 2024 IP 1 Ltd. All rights reserved.