Are Dollar Stores Beauty’s Next Big Channel?

The economy is chugging along, and holiday sales in stores and online are off to a robust start, especially for prestige beauty. So why, then, is Five Below — a discount chain that sells everything from candy and fuzzy socks to sheet masks and eye shadow palettes — one of the hottest new storefronts on Fifth Avenue?

The retailer, which specializes in party supplies and novelty items such as DIY glitter sugar scrub kits and scented nail polish, opened its Manhattan flagship — its 746th store in total — in November. It is just one of several chains in the dollar store channel that are rapidly expanding door counts in the U.S.

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