Thomas Vellios on product pricing
From Five Below CEO: We're On The Side Of Retail That Is Doing Great | CNBC · · CNBC
“Picking up spinners for us, what is this spinner cost right here? That one there is five dollars. And what's the margin you can make off this thing? Well, that's between me and my head merchants, but really I'm fascinated by this phenomenon.”
On , Thomas Vellios, Co-Founder & Executive Chairman at FIVE BELOW INC, spoke about product pricing during Five Below CEO: We're On The Side Of Retail That Is Doing Great | CNBC on CNBC.
About Thomas Vellios
In a September 2017 CNBC interview, Five Below CEO Joel Anderson discussed the company's performance and strategy. Anderson stated that "retail is alive" and that Five Below is "on the side that's doing great." He argued that success in retail requires either being in the value space or offering an incredible store experience, and said Five Below does both. Anderson described the company's point of differentiation as value, and characterized the brick-and-mortar store as "the cake" with the internet as "the icing on the cake." Anderson addressed the company's approach to trend-driven products, noting that Five Below is a "trend right retailer." He cited examples of past trends including Frozen, selfie sticks, and Shopkins, and said the current trend was the fidget spinner. Anderson stated that the company "really follow[s] the trends" and that trends "usually start on the coast." He said he felt the fidget spinner was in its "final innings" and that a sequin pillow would replace it, adding that the product's five-dollar price point is "what's magical about Five Below."