Headquartered in Philadelphia, Pennsylvania, Five Below is a chain of specialty discount gift shops that prices most items at $5 or below. Founded in 2002, Five Below has more than 1800 stores in 44 states across the United States. The retailer caters to teens and tweens, with items focusing on style, play, creativity, parties, and candy.
Business Challenges
Five Below faced multiple operational challenges rooted in legacy systems and outdated processes. Over 15 years ago, the company implemented Oracle E-Business Suite (EBS) using an approach that did not align with modern best practices, resulting in limitations that have since hindered scalability and efficiency. As the company expanded, its reliance on a manual procurement process for indirect purchasing became increasingly unsustainable, introducing operational risk and inefficiencies that could no longer support their pace of growth. Compounding these issues was a legacy planning model that had failed to keep up with the rapid evolution of Five Below’s business. This outdated model constrained their ability to forecast and adapt effectively in a dynamic retail environment, making transformation a strategic necessity.
Approach
To address these challenges, Five Below partnered with Peloton Consulting Group to leverage their proven Fit-to-Modern methodology. This proprietary approach emphasized the adoption of best practices, such as standardized approval workflows and fixed-asset management, which played a significant role in the decision to bring Peloton on board. Collaborating closely with Five Below’s internal team, Peloton helped establish a procurement-based organization, designing and implementing world-class processes that aligned with the capabilities of Oracle Cloud EPM and ERP, specifically Procurement. Additionally, Peloton’s retail industry subject matter experts worked hand-in-hand with company leadership to develop scalable, modern planning models that could effectively support the evolving demands of Five Below’s rapidly growing business.
Business Impact
The digital transformation led by Peloton had a significant and measurable impact on Five Below’s operations. By replacing their legacy EBS system with Oracle Fusion and implementing Oracle Cloud Procurement, Enterprise Data Management, and Retail Financial Planning, the company replaced outdated, manual workflows with streamlined, automated processes. By leveraging people, processes, and technology, Five Below reduced risk, increased efficiency, and enabled scalability across back office, indirect procurement, and financial planning functions. The shift to best-practice frameworks strengthened financial controls and operational visibility, while the new planning models, tailored by retail industry experts, empowered Five Below to make more accurate, data-driven decisions that align with their rapid growth. With a solid, scalable foundation now in place, Five Below is better positioned to support ongoing expansion and innovation in the dynamic retail landscape.
Summary
Faced with aging technology and manual processes that could no longer support its explosive growth, Five Below embarked on a digital transformation journey with Peloton Consulting Group and Oracle Cloud. By modernizing their procurement operations, aligning with industry best practices, and building scalable planning models tailored for retail, Five Below laid a strong foundation for continued innovation. This transformation not only streamlined operations and reduced risk but also positioned the retailer to respond quickly to changing market demands, keeping pace with their upward momentum while staying true to their mission of delivering value and having fun while doing it.
