News Briefs

A teen and tween value retailer is using artificial intelligence to generate optimal inventory decisions at scale for millions of product-store combinations.

Focusing on store growth, Five Below Inc. has implemented the Invent.ai retail planning suite, an AI-driven platform that automates forecasting and decision-making processes, to help position the right inventory at the right locations, in the right quantities, on a daily basis. 

[READ MORE: Five Below to open 150 stores]

Leveraging the Invent.ai platform, Five Below generates probabilistic forecasts for each store and product combination. These forecasts account for hundreds of variables, including seasonal event data and store, location and product characteristics.

The retailer also utilizes the solution’s granular forecasts to automatically determine where to position each product to generate the highest incremental revenue, as well as to automatically determine optimal reorder points and order quantities.

Through profit-optimized inventory replenishment decisions, Five Below says it is able to maximize inventory turns and availability. Five Below implemented a pilot of the Invent.ai solution in three months across several categories and subsequently expanded its use to all categories. The retailer is working to identify opportunities to further deploy the platform.

"Invent.ai has been a game-changer for our operations, helping streamline replenishment processes across a wide range of product categories and a large store network," said Graham Poliner, chief strategy and analytics officer at Five Below. "We expect Inenvt.ai’s algorithms to continue to help us optimize inventory levels, reduce stockouts and overstocking while ensuring that each location has the right products at the right time."

Founded in 2002 and headquartered in Philadelphia, Five Below operates more than 1,800 stores in 44 states. 

Consumers grew considerably more upbeat in the early part of June as they became less anxious about inflation and the potential impact of tariffs.

In preliminary results for June, the University of Michigan’s Consumer Sentiment Index surged 16% to 60.5 this month from a final reading of 52.2 in May. This was the first increase in sentiment since December. 

The index of current economic conditions rose 8% to 63.7. The future expectations index jumped 22% to 58.4.

Despite the notable improvement in June, consumers remain guarded and concerned about the trajectory of the economy, noted Joanns Hsu, surveys of consumers director, University of Michigan.

“Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed,” she said.  “However, consumers still perceive wide-ranging downside risks to the economy. Their views of business conditions, personal finances, buying conditions for big ticket items, labor markets, and stock markets all remain well below six months ago in December 2024."

[READ MORE: Survey: Most retailers raise prices, rebuilding supply chain in response to tariffs]

Inflation

Year-ahead inflation expectations plunged from 6.6% last month to 5.1% this month. Long-run inflation expectations fell for the second straight month, stepping down from 4.2% in May to 4.1% in June. Both readings are the lowest in three months. 

“Still, inflation expectations remain above readings seen throughout the second half of 2024, reflecting widespread beliefs that trade policy may still contribute to an increase in inflation in the year ahead,” Hsu said.

A longstanding quick-serve chain is eyeing a Southeastern state for expansion.

A&W Restaurants has announced strategic plans to expand the chain’s presence across Columbia, S.C. and into neighboring cities, including Darlington. A&W will open three locations in the Palmetto State over the next few years, and is actively seeking franchise partners for single and multi-unit development to continue the growth.

The brand first arrived in South Carolina in 2023 when local franchisees opened a store in Rock Hill, part of the Charlotte metropolitan area. A&W says the state is a “prime location” for business expansion due to strong economic performance and GDP growth compared to other states nationally.

"A&W Restaurants has become part of communities across the country by serving classic all-American food and offering a welcoming, hometown experience," said Betsy Schmandt, CEO and president of A&W Restaurants. "At A&W, we're committed to helping franchise owners build something lasting, something they can be proud to pass down for generations. We see tremendous potential in Columbia and its neighboring cities, where passionate, community-driven entrepreneurs can help us continue our legacy of bringing people together."

[READ MORE: Placer.ai: Raising Cane's, Dave's Hot Chicken top QSR, fast-casual sectors in Q1]

Founded over 100 years ago, A&W Restaurants, known for its root beer and “all-American” food, has over 850 locations in 35 United States, Canada and Asia. Over 600 of the locations are single-brand A&Ws and 230 are co-branded with KFC or Long John Silver's.

A fast-casual taco chain is debuting a new hospitality-focused store model in its home state.

Fuzzy’s Taco Shop is opening a new location on June 16 in Sugar Land, Texas (a suburb of Houston) that will feature a new dining experience highlighted by full-service hospitality, digital innovations and a refreshed menu.

Unlike traditional Fuzzy’s locations where guests order at the counter and collect their food at a pickup window, the Sugar Land restaurant will offer tableside service. Guests will be welcomed to take a seat and an employee will come take their orders.

New additions to the menu include the Texas Brisket Taco, the Cali-Style Steak Taco, the Sonora Relleno and the Ultimate Nachos.

[READ MORE: Fuzzy's Taco Shop opens debut California location]

“We’re excited to pilot this new model that puts hospitality front and center while simplifying the overall experience for our guests,” said Patrick Kirk, president of Fuzzy’s. “Sugar Land is helping us find that sweet spot between fast casual and full-service, with a streamlined menu, bold new taco creations, and a margarita lineup that puts our bar front and center.”

As of March 31, 2025, Fuzzy's operates 115 restaurants across 15 states, including one company-owned location in Texas. It is part of the Dine Brands Global, Inc. portfolio, along with Applebee's Neighborhood Grill + Bar and IHOP.

“Houston is a vibrant, dynamic city and we can’t wait to bring Fuzzy’s back to the community and become part of its DNA,” said Miro Nazarian, franchisee of the new Fuzzy’s location and executive director of the NGE group. “This new Sugar Land restaurant represents our shared vision for what the future of Fuzzy’s can be: more hospitality, more flavor and more fun. We’re excited to grow the brand and introduce more Texans to the Fuzzy’s experience.”

A Southern-based fried-chicken chain may be looking for a new owner.

Bojangles is exploring a potential sale of its business amid rising demand for fried chicken, according to a report by The Wall Street Journal. The company could fetch more than $1.5 billion, which is three-times what it sold for in a 2019 buyout, the report said. (Private-equity firms Durational Capital Management and TJC took Bojangles private in an all-cash deal in 2019 that valued the company at more than $590 million.)

The report comes on the heels of the sale of Dave’s Hot Chicken to Roark Capital for approximately $1 billion, which the company says will allow the chain to enter its “next phase of growth and innovation.”  In 2024, the private-equity firm acquired Subway for an estimated $9.6 billion.

Founded in 1977 and known for Southern-style chicken and biscuits, Bojangles operates more than 800 company-owned and franchised restaurants in mostly Southeast states, but it has been expanding its footprint in the Northeast as it looks to become a national brand. In April, the company opened its first location in New Jersey.

Total sales at U.S. chain restaurants grew 3% last year, according to Technomic. Sales at burger chains rose just 1%, while chicken restaurants largely outperformed with 9% growth.

Costco Wholesale Corp. is adding new benefits for its upper-tier members. 

The warehouse club giant will allow its executive members to shop an hour earlier than standard members, reported USA Today. Costco will open its U.S. locations at 9 a.m. exclusively for its executive members starting June 30. The stores will also remain open an extra hour on Saturdays for all members, closing at 7 p.m. 

In addition, executive members will receive a monthly $10 credit for orders of $150 placed through the company's "Same-Day" service or Instacart, the report said.

Costco’s executive members already receive an annual 2% reward on qualified purchases, as well as discounts on Costco services. The executive membership costs $130 per year. The company’s standard Gold Star membership is $65 per year.

Costco recently posted better-than-expected earnings and sales for its third quarter as it continues to emphasize lower prices for its members. Net income totaled $1.90 billion, or $4.28 per share, for the quarter ended May 11, compared to $1.68 billion, or  $3.78 per share, in the year-ago period. Analysts had expected earnings per share of $4.24.

Net sales increased 8%. Total revenue including membership sales was $63.21 billion, also better than expected. Membership fee income grew by 10.4% during the quarter.

The company currently operates 905 warehouses, including 624 in the United States.