Five Below is reconsidering the concept of self-checkout in order to address issues of theft.

Title: Five Below Reports Strong Sales Growth, But Profitability Affected by Shrinkage

Five Below, a popular discount retailer, recently announced a significant increase in sales for the latest quarter. However, the company also revealed that its profitability was impacted by unexpected shrinkage, including theft. This news comes as Five Below continues to expand its real estate presence.

Sales Growth:
Five Below reported a 20% jump in sales for the latest quarter, reaching a total of $442.6 million. This growth was driven by a combination of new store openings and a 3.2% increase in comparable store sales. The company opened 44 new stores during the quarter, bringing its total store count to 1,020.

Real Estate Expansion:
Five Below has been actively expanding its real estate presence, with plans to open approximately 150 new stores this year. The company is targeting both new and existing markets, with a focus on high-traffic areas such as shopping centers and malls. This expansion plan is expected to continue driving sales growth for the company.

Impact on Profitability:
Despite the strong sales growth, Five Below’s profitability was affected by higher-than-expected shrinkage. Shrinkage refers to the loss of inventory due to theft, damage, or other factors. The company reported a shrinkage rate of 2.5%, which is higher  

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