Specialty retailer Five Below doubled in size the past three years and now the company has secured a new distribution center to help it replicate that accomplishment going forward.
The new 600,000-sq.-ft. facility in the northern Mississippi community of Olive Branch will become operational in 2013 and will complement the company’s existing distribution facility in Newark, De. Five Below is focused on teen and pre-teen customers and derives its name from a merchandise mix price at $5 or less.
"It’s an exciting time for Five Below, and we are quickly rolling out new stores in existing and new markets," said Tom Vellios, CEO and co-founder of Five Below. "Our original distribution center in Newark, Del. has performed tremendously over the past six years, but as more stores opened and our geographic footprint expanded, we recognized the need for a second facility to support this growth. Olive Branch, Miss. is centrally located to help facilitate our future expansion."
The property is owned by Hillwood Investment Properties, a Perot company, as part of a joint venture with Brookfield Real Estate Opportunity Fund II. The distribution center is expected to create 100 regional jobs in 2013 and as many as 300 new positions over the next two years.
"I am pleased that Five Below looked to north Mississippi for its new distribution operations, and we welcome the company to our state," Mississippi Governor Phil Bryant said. "The investment being made and the jobs being created in Olive Branch will have a positive impact on the region, and I wish the company many years of success here in Mississippi."
Over the past three years, Five Below has opened nearly 150 new stores, more than doubling in size and greatly expanding its market presence. Today, the company has 245 locations across 18 states.
"By locating their new distribution center in Olive Branch, Five Below is strategically positioned in the Memphis market, one of the most centrally-located transportation and global logistics networks in the U.S.," said Toby Rogers, SVP of Hillwood Investment Properties. "We are excited to welcome them as a new tenant and believe the facility is an ideal fit as they look to expand into new and existing markets."