Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

Placer Bytes: Michaels Rising, Five Below and Belk's Potential Recovery

by 
Ethan Chernofsky
 on 
March 11, 2021
Placer Bytes: Michaels Rising, Five Below and Belk's Potential Recovery

In this Placer Bytes, we look at two of retail’s strongest in Five Below and Michaels and break down the potential for a Belk recovery.

Five Below’s Growing Strength

Five Below is among the most interesting brands to watch as it is seeing exceptional offline strength heading into a period where its value offering could be even more attractive. Following a dip in year-over-year visits driven by the pandemic, the brand quickly saw visits return to year-over-year growth by July 2020. And the year ended with exceptional strength with visits in November and December up 12.0% and 10.3% year over year, respectively. And, this strength carried into 2021 with visits up 30.5% year over year in January. 

While these are impressive numbers in their own right, the rise is especially interesting because of the timing and sustainability. While many retailers saw significantly reduced offline strength in November because of rising COVID cases, Five Below actually saw an especially strong month. This was further supported by a January that witnessed massive visit growth when compared to a January in 2020 that was exceptionally strong in its own right. When combining this data with the near-perfect alignment with the mission-driven shopping trend, the outcome is a prognosis that may position the brand even more effectively in the coming years.

DIY to the Rescue

Why was Michaels such an attractive acquisition? Following a severe drop in visits in the Spring, Michaels offline locations returned to form by summer when the brand enjoyed year-over-year visit growth in July and August. Yet, this quickly tapered off with visits down 3.8% and 5.1% year over year in November and December respectively. However, just before that trend stuck, visits in January rose 2.2% year over year refueling the idea that the brand's DIY focus could fuel strength deep into the new year.

While the company’s DIY approach seems well suited to the current environment and trends, the up and down performance makes it a difficult brand to fully nail down. But there is clearly room for optimism here as the alignment with key trends and strong relative performance point to a brand that could significantly outperform in the coming year. 

Belk Recovery?

While it isn’t necessarily the greatest time to be a department store, Belk recently exited bankruptcy with a new lease on its retail life. And there’s reason to believe that Belk could be capable of surprising in the year to come. The brand’s visits are in-line with, if not better than, other department store players, and the new financial breathing room could allow Belk to reclaim its past glory.

Yet, as with many of the sector’s leaders, the key will be identifying the right retail mix while upgrading a format to meet newer and more complex customer needs. 

Will Five Below continue its rise? Can Michaels find consistent growth? Will Belk drive a remarkable turnaround? Visit Placer.ai to find out.

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.
Black Friday 2023 Retail Recap
Starbucks’ 2023 Holiday Menu & Red Cup Day Performance
Turkey Wednesday 2023
Who Attended the 2023 Pickleball Championship? 
Three Surprising Holiday Shopping Trends
What’s in Store for Ulta Beauty This Holiday Season?
Best Buy and Department Stores: A Holiday Deep Dive
Discount & Dollar Stores: Strength Toward The End of the Year
The State of Off-Price Retail: Discounts Seal The Deal
Placer Mall Index Recap: October 2023
Placer.ai Office Index: October 2023 Recap
Retail Corridors Ahead of the 2023 Holiday Season
California, Here Gap Comes
Checking in With Home Improvement
Getting Into the Glasses Game: Warby Parker Takes Over
Fitness Positioned for a Strong 2023 Finish
White Paper Recap: October 2023
Coffee Giants Brewing Up Business
Popeyes and Burger King Lead the Way
Diving into Yum!
Looking Ahead to Black Friday 2023
Blockbusters Drive Movie Theater Comeback
Crocs and Boot Barn: Shoe-Ins for Success
McDonald’s and Chipotle's Winning Recipe
The State Of Steak: Checking in With Texas Roadhouse
Pleasant Pastimes: Pickleball Potential Proves Potent
Who’s Driving Downtown Manhattan’s Weekend Revival?
Diving into Downtown Manhattan Foot Traffic Trends
Rite Aid: Rightsizing Right
Major League Soccer: Its Die-Hard and Casual Fans
The Anchor Recap: September 2023
Placer.ai Office Index: September 2023 Recap
Placer Mall Index Recap: September 2023
September White Paper Recap
The Consumer Habits of College Students
JCPenney: Rightsizing and Revitalizing
Pent-Up Demand Ahead of October Sales Events
4 Strategies Retailers are Using to Drive Traffic to Their Venues
5 Key Regional Grocery Players Impressing in 2023
Upscale Kitchenware Trending Up
Costco Finds More Room for Growth
Four C-Store Chains Making an A-Grade
National Parks + Outdoor Summer Activities
Diving Into Darden: Summer 2023 Update
The Summer Event Effect
Messi: Massive in Miami
Looking Back on Back to School 2023
The Anchor Recap: August 2023
Placer.ai Office Index: August 2023 Recap
Placer.ai Mall Index: August 2023 Recap
Placer.ai White Paper Recap: August 2023
Starbucks Pumpkin Spice Latte Strikes Again
Big Scoop: We All Scream For Ice Cream
Sports Away: Lululemon & Nike’s Momentum Continues
Summer Visits Heat Up For Recreation and Outdoor Gear Chains
No CSS overwrite - July 2023 Office Index Recap
Staging - August 2023 Mall Indec
Mid-Atlantic Grocery Deep Dive
Experiential Chains Heating Up This Summer
Petco Goes Big by Going Small
Ulta Beauty: Leading the Discretionary Pack
Discount and Dollar Chains Continue to Thrive
Summer of Sports: DICK’s Sporting Goods and Hibbett Sports
Off-Price: Succeeding Into Summer
The Anchor Recap: July 2023
Superstores Maintaining Pandemic Gains Amidst Economic Headwinds
2023: Home Improvement at the Halfway Point
July 2023 Office Index Recap
Placer.ai Mall Index: July 2023 Recap
The Taylor Swift Visit Lift
Southwestern Grocery Dive
July 2023 White Paper Recap: Halfway Point Review & Quarterly Index
Yum! Brands: Driving Dining Visits
Slurpees and Summer Movies Stimulate Consumer Foot Traffic
Cool Beans: Summer Coffee Update
Checking In on Back to School 2023
Crocs and New Balance Tip The Scales
Burger Bliss: Shake Shack and In-N-Out Stacking Visits
Chipotle & McDonald's Continue to Reign Supreme
Vibenomics and Placer.ai Partner to Enhance Retail Media In-Store Measurement
California Grocers Here We Come!
Marriott’s Different Audiences
Bonchon and Kura Sushi Thrive in the Fast-Casual Scene
A Shoe In: Footwear Climbs to the Top
Cheers! Raising a Glass to Beverage Retail
Placer.ai Office Index: June 2023 Recap
Placer.ai Mall Index June 2023 Recap – A Turn of the Tide and a Dive into Open-Air Lifestyle Centers
Local Kitchens: Redefining the Restaurant
Unlocking Urban Insights: The Value in Manhattan’s Employees
Ohio State Parks On The Rise
How is Inflation Impacting the High-Income Shoppers?
Five Fast-Growing Dining Chains
What To Expect From Prime Day and July Sales Events in 2023
The State Of Fashion: How Are Apparel Retailers Faring in 2023?
2023’s Latest Dining Success Story: GEN Korean BBQ House
The NBA Finals: A Location Intelligence Perspective
Moving the Market: The Impact of Domestic Migration on Housing Costs
Post-Pandemic Museum Update
The Darden-est Things
The Enduring Demand for Urban and Suburban Retail