On Friday, teen retailer Five Below announced that this will be the year it invades Texas.
The company is planning to expand into the Lone Star State for the first time, opening four or five stores in Austin in 2013, and 10 to 12 stores in Dallas by late summer, topping out at 15 opened for the year. The company also noted that it plans to open 45 more stores elsewhere in the U.S., primarily in markets where it already has a presence.
In a statement explaining his southern strategy, CEO Tom Vellios noted: "Austin and Dallas are large markets and are a natural next step of our continuing expansion strategy. ... Texas' solid economy and family oriented population are a perfect fit." Adding to the state's attraction, Vellios noted that Five Below has a new distribution center in Mississippi that will be coming on like this spring and can use it to support its new Austin and Dallas locations.
Nonetheless, Five Below shares are heading lower today, dropping 2% to $34.17.
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