Five Below doubles down on DC capacity

Fast growing retailer Five Below is bolstering it supply chain capabilities in the northeast with a new facility that will eventually exceed one million square feet.

The retailer of of value merchandise for teens announced the it will open a new distribution center in Oldmans Township, N.J. The 1,045,000 square-foot facility, located at 5 Gateway Boulevard, Pedricktown, N.J., will replace the company's existing 421,000 square foot facility located 12 miles away in New Castle, Del.

"It is an exciting time for Five Below, as we continue to invest in our infrastructure to fuel the expansion and success of our brand," said Joel Anderson, CEO and president of Five Below. "The Eastern U.S. is an extremely important geography 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. With NFI as a partner, we are excited about the growth ahead and our ability to fulfill our customer's needs."

Five Below will occupy approximately 700,000 square feet of the facility to start, with plans to grow to a million square feet over time. The new distribution center will support the company's continued growth and expansion in the Eastern U.S.

Five Below will begin shipping out of the new distribution center in July. The property is owned by NFI, a supply chain solutions provider headquartered in Cherry Hill, N.J. All of the current jobs at the New Castle facility will be transferred to the new Pedricktown facility.

Additionally, over 100 new jobs are expected to be created over the next few years.

As of Nov. 1, Five Below operated 365 stores in 21 states.