Five Below Signs 12 Leases in Chicago Entry

CHICAGO-Five Below, a store that features teen-style accessories for $5 or less, has signed 12 leases of 20 planned locations in the Chicago area. The Philadelphia-based company is making its entry here soon, with 10 of the stores expected to open on a non-specified day in May.

However, these openings are just small potatoes. The chain plans to open 50 new stores this year, making the company 200 locations strong. David Schlessinger, co-founder and executive chairman, tells GlobeSt.com that the company hopes to have 450 stores open in five years, with 60 stores in the Chicago area.

Schlessinger says his stores, typically about 8,000 square feet, are successful because they locate in strip centers rather than pricey malls, and because the economy has encouraged families to be frugal on purchases. “We started in 2002 based on the concept to make a store that teens could afford to shop in themselves,” he says. “It’s the empowerment of kids as they spend their own money. We also pay attention to trends, and we have cool items, such as the latest cell phone and iPad cases.”

He’s joined by Tom Vellios, CEO and co-founder. Schlessinger previously formed Zany Brainy, and was joined there by Vellios as well, but he says the duo left the company before it went bankrupt in 2001. In October, the company received a $194 infusion of investment cash from private equity firm Advent International.

The stores are going into the following centers in Illinois (city names are the same as the center unless noted): Bloomingdale Court, Bradley Commons, the Brickyard (Chicago), Bohl Farm (Crystal Lake), Countryside Plaza, Fabyan Crossing (Geneva), Forest Plaza (Rockford), Hawthorn Hills Square (Vernon Hills), Joliet Commons, Merrillville Plaza, Orland Towne Center and Woodfield Village Green (Schaumburg).  These types of centers are the best locations for the product, Schlessinger says.

“Ninety percent of our stores are in outdoor shopping centers. We’ll go into a mall but it has to be the right situation. Malls have too many extra charges, plus they’re losing traffic. Also, we have a lot of moms who shop in our store to buy gifts, it’s easier if they can drive the car up to near the door,” he says.