How a Philadelphia discount retailer grew from a local shop to a national powerhouse

Cultures · Published 10 October 2026 Swipe more like this →

In short: Founded in 2002 to serve tweens and teens, Five Below transformed from a small Pennsylvania startup into a retail giant with over 2,000 locations. Despite leadership shifts and market volatility, the company maintains a unique pricing model that keeps its core demographic returning for affordable goods and seasonal treasures.

Five Below was established on October 4, 2002, in Wayne, Pennsylvania, by Tom Vellios and David Schlessinger. Both founders brought retail experience from their previous ventures, Encore Books and Zany Brainy. The company, which moved its headquarters to the Lit Brothers Building in Philadelphia in 2018—a site now known as WowTown—focuses on a specific niche: tweens and teens. Its stores typically span 8,000 square feet and offer a mix of products priced up to $5, alongside a smaller selection of items reaching up to $40.

The company's expansion strategy has been aggressive. After entering its first out-of-state markets in 2011, it reached a footprint of over 2,000 stores across 47 states by 2026. This growth trajectory faced significant challenges, including a temporary shutdown of all locations during the 2020 COVID-19 outbreak. However, the brand saw a recovery in foot traffic, with location data provider Unacast reporting a 63% year-over-year increase between Q2 2022 and Q2 2023. Financial performance has mirrored this physical expansion, with annual sales climbing from $1 billion in 2016 to $3.08 billion by 2022.

Leadership has also seen notable transitions. Joel Anderson, who served as CEO starting in 2014, resigned in July 2024, a move that triggered a 25% drop in the company's share price. Following an interim period led by Kenneth Bull, Winnie Park—formerly the CEO of Forever 21—was appointed president and CEO in December 2024. Beyond retail, the company maintains a significant philanthropic footprint, having raised millions for organizations like Alex's Lemonade Stand Foundation and St. Jude Children's Research Hospital. As the company continues to evolve, it remains a fixture in the American retail landscape, with long-term ambitions to reach 2,500 locations.

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