Specialty Discount Retailers Post Strong Q4 Showing
Specialty discount chains are like “retail therapy” for price-conscious shoppers.
Retail’s crucial fourth quarter measured favorably for bargain chain brands Five Below and Ollie’s Bargain Outlet, with the former seeing a healthy spike in-store visits and the latter appealing to the perennial quest for inexpensive, fun shopping experiences.
According to Placer.ai, between September and December 2023, Five Below’s year-over-year (YoY) monthly visits increased from 14.6% to 22.1%.
The rise was boosted by the chain’s growth in store count and its strong reputation for holiday gift-finding. Additionally, it attracted shoppers with a growing selection of “Five Beyond” products, priced above the chain’s traditional $5.00 ceiling.
Ollie’s Bargain Outlet offers lower-ticket items like food and books, but also a wide range of premium products like electronics and home furnishings.
And because its model is based on “closeout” items, “shoppers never know exactly what they’re going to find – turning each trip into something of a treasure hunt,” according to Placer.ai.
Placer.ai calls these specialty discount chains “retail therapy” for price-conscious shoppers.
Meanwhile, Dollar General’s pOpshelf concept – launched in late 2020 with a discretionary-focused product mix aimed at higher-income shoppers than the company’s flagship brand – now boasts 240 locations across 20 states.
It continues to expand its footprint and audience. pOpshelf, too, welcomes large visit spikes during the fourth quarter of the year, as shoppers seek out inexpensive gifts and other holiday fare.
As of February 2024, visits to the chain were up 190.1% compared to a March 2022 baseline.
“Though Dollar General has reined in the pace of pOpshelf’s expansion to account for what remains a challenging retail environment, the company still plans to open more stores this year,” according to Placer.ai. “And if pOpshelf’s strong visit trajectory is any indication, investing in the concept’s long-term strength may well bear fruit in the months and years ahead.”
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