Five Below, Inc. has announced the signing of a lease for a new distribution center, according to the company. The million-square-foot distribution center will operate in Oldmans Township, NJ, Five Below reported, and replace the company’s existing 421,000-square-foot facility located 12 miles away in New Castle, DE.
Five Below will occupy approximately 700,000 square feet of the facility to start, with plans to expand into the million square feet over time, it noted. The company maintained that it expects the new distribution center to become fully operational in the second half of 2015. It will support the company’s expansion on the East Coast, Five Below added.
“It is an exciting time for Five Below, as we continue to make the necessary investments to fuel the expansion and success of our brand,” Tom Vellios, CEO and co-founder of Five Below, said in announcing the lease signing. “The Northeast is an extremely important market for Five Below and includes some of our highest volume stores. In addition, there is substantial store growth opportunity on the East Coast, which creates the need for increased distribution capacity. For us, a key component of this decision was to find a strategic location that would meet our growth needs but also allow us to maintain our workforce, who have been a key contributor of our success to date. With this new distribution center, we have achieved both of these objectives.”