A POPULAR discount retailer has made a significant change to its product offerings.
Consumers were confused at the sudden move, questioning what merchandise might be available moving forward.
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The chain, Five Below, confirmed this week that it would be pausing all Chinese imports, per The Philadelphia Inquirer.
It made the move as a direct response to the 145% and potentially 245% tariffs recently implemented by President Donald Trump.
“In order to ensure maximum flexibility, we proactively paused orders from China, given the escalation in the tariffs, as we evaluate all options to find trend-right products at attractive prices,” Five Below noted in a statement.
Shipping company Moller-Maersk A/S also instructed Five Below’s China-based factories to take back all shipping containers sent to ports as of April 10, according to a Bloomberg LP report.
No more will be sent out in the foreseeable future as well.
Five Below said it’s “utilizing several tools to help mitigate tariffs and [is] swiftly assessing the best of many available options.”
The discount retailer has been scrambling to adjust for a short while now, as it noted in a March filing to the United States Securities and Exchange Commission.
It argued that “tariffs imposed by the U.S. government could increase the cost to us of certain products, lower our margins, increase our import related expenses, cause us to increase our prices to consumers and reduce consumer spending.”
So not only would Five Below’s customers at its over 1,800 stores see the budget-friendly prices skyrocket, but Five Below’s profitability would also suffer.
Five Below emphasized in the report that a “significant majority” of its inventory was manufactured outside of the country and imported, with China being the “single largest source of merchandise we import and source from domestic vendors.”
Along with pausing shipments from China, Five Below said it’s going to negotiate lower supplier prices and try to import from countries that don’t face as significant tariff rates.
It will also try to have more US-based sourcing for products.
JUMPED THE GUN?
Some Five Below customers were stunned by the retailer’s move to halt shipments from China so soon, when it’s the brand’s largest importer.
“So what exactly are they going to sell?” questioned a consumer in a post on X.
What items will be affected by the tariffs?
AMERICANS should prepare to see significant prices changes on everything from avocados to cars under President Donald Trump’s new global tariffs.
Here is a list of some of the everyday products that could see a massive price tag surge.
- Coffee
- Tea
- Bananas
- Foreign-made cars
- Sneakers
- Furniture and other home goods
- Pharmaceuticals
- Video games
- Clothing
- Toys
- Washers and dryers
- Avocados
- Housing materials
“Nothing. There is no math where any of this works if you manufacture in China,” another added.
“A lot of things are about to grind to a halt.”
“Going to sell only American-made goods and call it 5 above,” a third person remarked.
Another shopper argued that the chain was “done.”
EXPANSION CONTINUES
Five Below is also in the middle of a massive expansion plan and seeks to open around 150 new stores in 2025.
At least 50 opened by the end of last month, according to what CFO Kristy Chapman noted during a recent earnings call.
Chapman told investors that sales are expected to stay the same or increase by at least 2% alongside the added locations.
This comes after 22 Five Below locations were opened at the end of 2024.
Five Below didn’t disclose a specific timeline for when the remaining 100 stores will break ground.
It also recently made a good amount of updates to its checkout experience last summer after customers complained about “awkward positioning.
Five Below is also shuttering all of its stores for 24 hours in just days while competitors like Dollar Tree scoop up the business.
