Five Below Banks on ‘Affordable Joy’ as Holiday Shoppers Tighten Belts

PHILADELPHIA, PA – November 6, 2025 – As consumers navigate a still-uncertain economic landscape, discount retailer Five Below is doubling down on its strategy of “extreme value,” hoping to capture a larger share of the holiday shopping season. The company announced today it's rolling out a festive assortment of gifts and décor, most priced at $5 or less, alongside a significant seasonal hiring push and a continued partnership with the U.S. Marine Corps Toys for Tots program.

Five Below’s timing is deliberate. While forecasts predict overall holiday spending will rise this year, a recent National Retail Federation report suggests shoppers remain price-sensitive. The company is positioning itself as a refuge for those seeking to maximize their gift-giving budget without sacrificing the joy of the season.

“We’re seeing a clear trend towards mindful spending,” said a retail analyst. “Consumers aren’t necessarily cutting back on gifts entirely, but they’re being more strategic about where they spend their money. Five Below’s price point makes it very appealing in this environment.”

A Haven for Budget-Conscious Shoppers

The retailer’s holiday collection features a wide range of items, from toys and games to home décor and seasonal treats, all designed to appeal to a broad demographic. Five Below has successfully cultivated a reputation for offering trendy, “Instagrammable” products at affordable prices, a key differentiator in the crowded retail space. The company has expanded beyond purely impulse buys to include items that support hobbies and creative expression, broadening its appeal beyond younger shoppers.

“The key is offering products that feel special without breaking the bank,” explained a marketing consultant specializing in value retail. “Five Below understands that shoppers still want to create memorable experiences, and they've figured out how to do that at a price point that works.”

Seasonal Hiring Surge Reflects Broader Retail Trends

To meet anticipated demand, Five Below announced plans to hire over 25,000 seasonal employees across its 1,300+ stores. This hiring surge mirrors a broader trend in the retail sector, which relies heavily on temporary workers during the holiday season. However, securing adequate staffing remains a challenge.

“Retailers are facing increased competition for seasonal workers,” said an employment expert. “Factors like the tight labor market and rising wages are making it harder to attract and retain staff.”

Five Below is offering competitive wages and flexible scheduling to attract potential employees. The company emphasizes its commitment to providing a positive work environment and opportunities for career advancement.

“It’s not just about filling positions,” said a Five Below spokesperson. “We want to create a welcoming and supportive environment for our seasonal employees.”

A 16-Year Partnership with Toys for Tots

Beyond its commercial endeavors, Five Below is reaffirming its commitment to social responsibility through its long-standing partnership with the U.S. Marine Corps Toys for Tots program. For 16 years, the retailer has provided in-store donation bins and promotional support to help collect toys for children in need.

“Five Below’s support is crucial to the success of our program,” said a Toys for Tots representative. “Their network of stores and their commitment to giving back make a real difference in the lives of many children.”

The partnership aligns with growing consumer demand for businesses that prioritize social responsibility. Studies show that a significant percentage of shoppers are more likely to support companies that demonstrate a commitment to giving back to the community.

“Consumers are increasingly looking for brands that share their values,” said a consumer behavior analyst. “Supporting charitable causes is a way for companies to connect with consumers on a deeper level.”

Navigating a Complex Retail Landscape

Five Below’s strategy isn’t without its challenges. The company faces competition from larger retailers like Walmart and Target, as well as from online marketplaces like Amazon. Maintaining a consistent supply of trendy, affordable products is also crucial.

“The retail landscape is constantly evolving,” said a retail consultant. “Five Below needs to stay nimble and adapt to changing consumer preferences.”

The company is investing in its supply chain and expanding its private label offerings to improve profitability and differentiate itself from competitors. It’s also leveraging social media and digital marketing to reach new customers and build brand loyalty.

“Five Below has built a strong brand identity and a loyal customer base,” said a marketing expert. “They’re well-positioned to succeed in this competitive market.”

As the holiday shopping season kicks into high gear, Five Below is betting that its focus on “affordable joy” will resonate with shoppers seeking value and connection. The company’s strategy reflects a broader trend in the retail sector, where companies are increasingly prioritizing social responsibility and catering to the needs of budget-conscious consumers. Whether it's a successful holiday season remains to be seen, but Five Below is clearly aiming to deliver a little extra cheer without breaking the bank.