Five Below Breaks the $5 Price Barrier
Some dollar stores offer items that cost more than $1. That's necessary if those companies hope to meet the needs of their customers, who seem to accept higher prices on some products as long as the perception of value remains high.
That's the slippery slope Five Below (NASDAQ: FIVE) must navigate as it adds a section with items priced higher than $5 to its stores. If the company handles the change well and "wows" consumers with deals on merchandise it previously could not offer, it might be able to strengthen its brand with the change.
There is a risk, however, that breaking the $5 price barrier makes some consumers less likely to shop at the chain. That's why the discount retailer has to be very careful and make it clear that it remains committed to being a high-value chain where most items cost less than $5.
Source Fool.com
