To supply its ever-increasing store count, Five Below plans to open three new DCs over the next three years, with the first of these state-of-the-art facilities set to open in the spring of 2019. The 700,000 square-foot DC will be built just south of Atlanta and will have the capability to flex up to 1 million square feet if needed in the future. The distribution center marks a change in strategic direction in terms of the retailer’s real estate holdings ― the is the first DC that Five Below will own outright, all of its other DCs are leased properties.
“This is the first facility built entirely to our specifications,” said Anderson. “Owning the building will provide us with the control and flexibility as we grow our footprint throughout the Southeast. This DC, together with our plan for additional new DCs, demonstrates our commitment to supporting our rapidly growing store base through disciplined infrastructure investments.”
In conjunction with the supply chain enhancements the retailer must put in place as it looks to scale its physical presence, is a new POS solution that will help facilitate growth and further redefine the retailer’s brick-and-mortar experience.
“The implementation of the new POS system is on track to be deployed in our stores this year,” Anderson said. “This new system delivers the scale needed to support our more than 2,500 U.S.-store opportunity, and provides the functionality and flexibility for future features such as a loyalty program and omnichannel capabilities.”
One of the new capabilities the updated POS solution will offer is the introduction of a Five Below loyalty program. The program will further enhance the shopping experience for consumers, while granting the retailer more intimate knowledge into customer shopping patterns, which will be leveraged throughout the organization.