Dive Brief:
- After introducing same-day delivery with Instacart, Five Below has launched a buy online, pick up in store option across its more than 1,250 stores, the retailer announced on Tuesday.
- Shoppers can order items ranging from games and beauty products to snacks and craft items. Customers can access the service on the retailer’s website or the Five Below app for iOS and Android, per the announcement.
- The retail chain also said the service may be used for its relatively new Five Beyond section, which has items priced at more than $5. The company has rolled out the Five Beyond section at select stores across the U.S.
Dive Insight:
Like other retail chains, Five Below has focused on offering shoppers more convenience.
“In today’s fast-paced and hectic world, we know how important it is to consumers to have convenient ways to obtain the products they want and need quickly,” George Hill, chief retail officer of Five Below, said in a statement. “When we launched our partnership with Instacart in 2020, our customers really enjoyed the new level of convenience it brought to their shopping experience, so we are excited to now offer customers the opportunity to buy online, pick up in store.”
Introducing a BOPIS option could be a win-win for consumers looking for convenience and retailers seeking more sales. A 2019 survey of more than 2,000 U.S. shoppers from the return service Doddle found that 85% of respondents made more in-store purchases while using a retailer’s BOPIS option. The survey also found that half of the respondents decided where to shop online based on whether a retailer had a BOPIS option.
Five Below has also tested out same-day deliveries. After piloting a partnership with Instacart in December 2020, the retailer expanded its collaboration with the delivery platform in June 2021, introducing the service at 1,100 locations. Instacart has lined up other retail partners seeking a same-day delivery option for their customers, including fellow discounter Family Dollar. Instacart late last year introduced multiple features to help customers find discounts, including a ‘Deals’ tab and a section of the app specifically for discounters, dubbed the “Dollar Store Hub.”
Five Below has also focused on expanding its physical footprint and in-store product selection. In March 2021, after adding its Five Beyond concept to 140 stores the year prior, the company said it planned to grow the concept to 30% of its locations by the end of 2021. To make the Five Beyond section more enticing, the retailer planned to showcase exclusive online items, including more Bugha gaming products. The retailer is aiming to grow its overall store count to more than 3,500 locations by 2030.
Meanwhile, Five Below faces stiff competition from other discount retailers as consumers seek affordable items amid inflation concerns. Family Dollar, for example, is reducing its prices to compete with similar store chains.
With prices elevated, consumers have taken action to rein in their spending. A Morning Consult survey released last month found that 79% of respondents have sought discounts, and 77% reduced their shopping. The survey also found that more than two-thirds (68%) of respondents had shopped at discount stores and bought generic brands (67%) to combat inflation.
