Value chain Five Below led a $12 million financing round for Nerd Street Gamers, an esports facility developer. The goal: respawn foot traffic in Five Below’s stores.
With the investment, Nerd Street will turn several of Five Below’s stores into strip mall gaming arenas.
- In 2020, Nerd Street will open 3,000-sq.-ft. gaming centers in several Five Below stores. About 100 of Five Below’s 750 stores have enough space to handle gamers, their audiences, and all their snacks.
- Five Below estimates that over 70 store locations could include esports facilities in the next several years.
My takeaway: Store renovations like Five Below’s are 100% about the destination. In the age of the e-word, extra store space is ripe for snazzier customer activations—even at the expense of the employee breakroom.