Watch out Dollar Stores, You Now Have COMPETITION!!!
All of our family and friends know how much we love the dollar store and good deals. Christa’s neighbor, Mary, told her about this new store called Five Below. Everything in the store is five dollars or less. We had a few minutes to spare before we were to pick up the babies from Mother’s Day out, so we stopped in.
Cables Gag Gifts
Exercise equipment Cosmetics
Five Below was started in 2002 and currently has more than 300 stores across the country. We found several in the Houston and Texas area. When we typed Louisiana, this is what we got:
Five Below’s mission is to keep prices low and quality high.
I was interested in this particular comparison because a few years ago when Dave was completing his MBA at Rice, one of his group projects was to analyze the 99 cent store model. They analyzed data, interviewed higher ups, and then came up with an analysis. Ultimately the 99 cent store did not like the bottom line of their report. They concluded that this 99 cent model could not go on forever because of inflation. It seemed impossible. Do you think we will have Dollar Trees or 99 cent stores in the year 2050? Dave did mention the key to some of the dollar store success was that some items you buy for $1.00 could generally be purchased for less at other stores.
(Another interesting project they worked on was whether Reliant paid too much to name the Texan’s football stadium Reliant stadium. They spend about 12 million per year to have their name on the building. Again they concluded that yes, Reliant paid WAY too much! )
One more tip: Barnes and Nobles is trying to change out their toys for new ones. They are running a 75% off sale. If you haven’t seen the toys they sell, they are High Quality!!!!