Five Below (NASDAQ:FIVE) announced that the company would be opening a flagship store on New York City’s Fifth Avenue sometime later this year.
The retailer announced that the move would mark the company’s first store in Manhattan and it is slated to open in November of this year near Bryant Park, between 44th and 45th streets, according to the company. The store will be about 10,800 square feet, which is larger than the average Five Below store that comes in at around 8,000 square feet.
The company’s decision to expand make sense as it is seeking to increase profit margins by bringing its value retail options to one of the biggest cities in the world, which has experienced plenty of storefront vacancies in recent months as companies such as Toys R Us have filed for Chapter 11 recently.
In addition to companies going bankrupt, Five Below is benefiting from the fact that it can afford to meet the high rent demands of the city, which have taken a toll in the business of many other companies.
“This is a unique opportunity for us to establish a presence in one of the world’s most iconic and popular shopping destinations and introduce new customers to the Five Below brand,” CEO Joel Anderson said.
FIVE stock was up about 1.2% on Friday following the news.