National discount store chain ‘cheaper than Dollar Tree’ to open 150 new locations

One major discount retailer is pulling ahead of its struggling rivals who are abandoning stores across the nation. 

Five Below, dubbed ‘cheaper than Dollar Tree’ by fans, is set to open an impressive 150 locations this year alone. 

The teen- and tween-focused chain announced the expansion during its fourth quarter earnings call on Wednesday, which saw it surge past Wall Street’s expectations with a 9 percent surge in sales.

With 1,800 locations across 45 states, the new openings will boost its footprint by 8.5 percent. 

While Five Below hasn’t revealed all new locations, its website has named at least eight upcoming stores, including New Castle, Pennsylvania; Baltimore, Maryland; and Fort Mitchell, Kentucky. 

CFO Kristy Chapman told investors that 50 new stores will be open by March 31 alone. 

But Five Below said that it faces problems that may force it to raise prices for customers. 

Many of the retailer’s items, mostly under $5, are imported — with as much as 60 percent coming from China. 

That could lead to a jump in as President Trump imposes heavy tariffs on imports.

These costs may be passed on to consumers, who are already feeling the squeeze of persistent inflation..

Five Below has already confirmed it will be raising some of its prices that are below $5. 

Still, new CEO Winie Park, who took the helm in December, remains focused on keeping Five Below a go-to destination for kids and families. 

‘Our vision is to be the destination for kids from elementary through high school and beyond, as well as mom and dad,’ Park explained.

‘By focusing on the kids first, we have a unique opportunity to vote a relationship with our customers from a young age and be a go-to resource as they grow and become parents themselves.’

Park said stores will also introduce a ‘trending’ section of ‘fresh and relevant’ deals at $5 or less, and a few priced over that amount. 

Five Below has already confirmed it will be raising some of its prices that are below $5

Five Below rival Dollar General is set to close almost 100 stores in coming weeks

Five Below’s expansion comes as Dollar General is set to close almost 100 stores in coming weeks. 

The company is also closing 45 locations under its pOpshelf brand.

‘Many of our customers report they only have enough money for basic essentials, with some noting that they have had to sacrifice even on the necessities,’ CEO Todd Vasos said of the closures.

The closures come amid a broader retail shake-up, with experts warning that up to 15,000 physical storefronts could shut down nationwide by the end of the year —double the 7,000 that closed in 2024.

Dozens of giant chains — including Macy’s, Party City, and Big Lots — launched a massive slate of store closures in the past 12 months amid changing customer trends.