Five Below, Inc. (FIVE)

Five Below sells small items for teenagers at low prices — a shop where almost everything costs under five dollars.

The format is built on impulse buying: a teenager comes in with a small amount and takes several things, because each costs little. The range changes constantly, following fads — toys, accessories, things seen on social media — and it is novelty that brings the shopper back.

The economics demand very cheap goods and fast turnover; buying goes directly to Asian manufacturers, so import tariffs hit this model harder than ordinary retail. Growth came from opening hundreds of shops a year. Risks: tariffs, in-store theft and fads fading in particular categories. A single store costs little to open, so the format expands faster than most retail. The company pays no dividend.