Five Below Prices Often Exceed $5 in Holiday Shopping

A visit to Five Below for last-minute holiday shopping uncovered that many items now cost more than $5, challenging the store's longstanding promise. The discount chain, with hundreds of locations across the US, has implemented selective price adjustments due to tariffs and higher sourcing costs, as 60% of its products come from China. Despite a previous 3% sales dip, the company's stock has surged 85% year-to-date as of mid-December.

Observations included pricier stocking stuffers at $6-$7, wrapping paper at $5 (up from $1), and licensed products like Wicked figurines reaching $35. Holiday "snacktivities" like $4 gingerbread houses persist, alongside deals such as two-for-$10. Beauty dupes and plushies, including Stitch at $7 and official Squishmallows over $5, highlight the mix of affordable and elevated pricing. While no longer strictly under $5, Five Below continues to offer value for cute trinkets targeted at teens and tweens, with scaled-back non-core items like luggage.

Walking into Five Below, shoppers anticipate a treasure trove of items priced below $5, as suggested by the store's name. This discount chain operates hundreds of stores across the US, making it a go-to for budget-conscious holiday shopping. However, a recent visit for late-season gifts revealed a shift, with prices creeping higher across various sections.

The experience began on the second floor of a New York City building, a common setup due to limited real estate. Holiday "snacktivities" greeted visitors immediately, including $4 gingerbread houses and similar edible crafts like hot chocolate bombs. These festive offerings remain a staple, evoking the store's playful vibe.

Initial Surprises in Pricing

Stocking stuffers caught attention right away, priced at $6 or $7 alongside the traditional $5-and-under items. Previously, there was a designated Five Beyond section for higher-priced goods, but now items over $5 are integrated throughout the store. This blending reflects broader changes in the assortment.

Wrapping paper, an essential for holidays, now costs $5 per roll. In past years, it was available for as low as $1, allowing purchases of five rolls for $5 total. At current rates, that same quantity would total $25, marking a notable increase.

Five Below has faced challenges from tariffs and elevated sourcing costs, prompting selective price hikes. With 60% of products imported from China, these external pressures have significantly impacted operations. The company has responded by focusing on its core demographic of teens and tweens, reducing emphasis on non-essential items like luggage.

CEO Winnie Park highlighted these issues during a March earnings call, noting the brand's strategy to "raise the bar on adding value to our highly edited assortment of product above $5." She also emphasized that "60% of our total cost of goods are imported from China," underscoring the tariff burden. These adjustments aim to maintain profitability amid a tough prior holiday season.

Business Performance Amid Changes

Sales dipped 3% following last year's challenges, as discussed in the March earnings call. Yet, the strategic shifts have boosted the company's stock by 85% year-to-date through mid-December. This positive trajectory suggests the price realignments are resonating with investors.

• Tariffs on China-sourced goods increase overall costs.
• Selective adjustments target value-added products for core customers.
• Scaling back peripheral items like luggage streamlines inventory.

The store's layout showcased a heavy emphasis on licensed merchandise, a departure from previous visits. Signs for "two for $10" deals appeared more frequently, signaling bundled value. However, individual prices often exceeded $5, particularly in popular sections.

Licensed and Themed Products

A dedicated corner for Wicked: For Good featured items from $5 up to $35 for figurines. Smaller Funko-esque pieces started at $10, alongside branded backpacks, lotions, hand sanitizers, toys, accessories, bath bombs, and tech gadgets. Plushies of characters like Stitch, Pac-Man, Shrek, and Minecraft figures were all priced at $7.

Official Squishmallows surpassed $5, differing from cheaper dupes found in earlier 2024 visits. The store also capitalized on trends with its own version of Labubu plushies, dubbed "Lafufus," priced one dollar above $5. These furry toys from the Chinese brand Pop Mart have seen explosive popularity, with revenue projections reaching $1 billion by 2025.

Beauty, Clothing, and Tech Offerings

The beauty section, crowded with interest from younger shoppers, maintained $5 pricing for dupes resembling brands like Summer Fridays ($24 original), Touchland mists ($10+), Sol de Janeiro lotion ($48), Tower 28, and Drunk Elephant cleanser ($36). Socks ranged from $5 per pair to $6 for a 10-pack, while Ugg-inspired slippers hit $7.

Water bottles mimicking Stanleys and Owala were $7, and exercise weights rose to $8 from $5.95 in 2023. Tech items like headphones ($6-$10), phone cases ($7), and speakers ($8) followed suit, though screen protectors stayed at $5. Candy remained untouched, priced $3-$5, and a Lego set dupe was $20—far below official sets starting at $50.

Despite the upward price trends, Five Below retains its charm as an affordable destination for holiday gifts and stocking stuffers. The store excels in providing cute trinkets and dupes that appeal to budget-savvy families, especially for its target audience of teens and tweens.

Visitors should adjust expectations: while plenty of items remain under $5, encounters with $8, $10, or even $20 prices are now common. This evolution positions the name "Five Below" more as a suggestion than a strict rule, but the overall value persists.

Final Thoughts on Value

The blend of licensed excitement and everyday essentials keeps the shopping experience engaging. For those seeking last-minute presents, Five Below offers a vibrant alternative to pricier retailers. As the company navigates economic pressures, its focus on curated, high-value products ensures continued relevance in the discount market.

In summary, the holiday visit affirmed Five Below's role as a fun, economical spot—evolved but enduring.