(New York, NY) — Fifth Avenue is about to become home to another retail store. However, it’s not another iconic luxury brand.
This November, Five Below, a discount retailer that is known for selling everything for $5 or less, will be moving into 530 Fifth Avenue.
The famous avenue, known for its high price tags and wealthy shoppers, could be due for a transformation, that’s a bit less luxurious.
Discount stores are doing well and have been appearing more often in upscale shopping districts. Over the past few years, New York has seen the expansion of popular discount stores such as Family Dollar, Dollar Tree, and Lot-Less Closeouts. In fact, these stores went from having zero city locations in 2008 to a combined 161 locations by 2017.
While some retail brokers don’t see this as an indication of an entire transformation, luxury retailers are not expanding at the same rate as discount stores. If a tenant is able to fill a vacant space on Fifth Avenue, owners aren’t in a position where they can cherry pick.
“There is a reality, and if I’m an owner with a vacant space, and a tenant comes along and pays a rent that I’m comfortable with, I’m not sure that I can afford the luxury of saying, ‘No, I can’t afford to put this sort of tenant there.’” Commented Timothy King, CEO of the Brooklyn-based brokerage firm CPEX Real Estate.
However, King also stated that he doesn’t believe Fifth Avenue will become “the epicenter of Joe’s Bargain Store.”
As for Five Below, the new store will cover 10,800 square feet, which is around 3,000 square feet larger than the average size for the company.
Five Below has proven to be a strong company and doesn’t anticipate having any trouble attracting shoppers to the new location.