Ross Stores Inc: Case Analysis Of Ross Stores Inc.

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Ross stores Inc. is headquartered in California and is the largest discount retail chain in the country. Ross operates under the names Ross Dress For Less and Discount D together the two brands operate a total of 1,350 stores across the United States. Ross attributes its success to being able to attract and retain quality employees and being very selective in the location of its stores. Ross has also average same sales growth at 5% a year. Same Sales is used in retail to describe sales over a certain a period of time from existing stores. It allows the investor to differentiate between sales from new stores versus sales from existing stores.

Ross is able to sell its merchandise at a lower price than its competitions by buying at the
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This strategy is seen in each of Ross’s functional areas employees, real estate, marketing and operational. Ross is very selected in where they place stores. Store placement is based on potential foot traffic and other nearby retailers. None of the stores are located in what is considered prime retail space due to the high cost of lease space in these areas. Ross‘s store placement philosophy has allowed Ross to pass on its savings to its customers. Not only is selecting the right area to open a store a major part of Ross’s business model but also the layout of the stores. The simplistic layout of the stores allows for Ross to make changes quickly without incurring additional cost. All of the Ross stores are stocked with very low inventory which helps to keep inventory storage costs down. It also allows for merchandise to quickly move and new Also the stores are considered no frills. Ross has enjoyed growth before, during and after the recession which has allowed them to open stores in various …show more content…
Ross’s closes direct competition also offering low cost brand name apparel are TJX Companies (TJ Maxx, Marshal’s, and HomeGoods) and Burlington Coat Factory. Ross also considers Walmart and Target are competition. TJ X Companies has separated its houseware products into a separate store whereas Ross have kept apparel and housewares in the same store. Separating housewares from apparel has allowed TJX Companies to offer a wide range of houseware products to its customers. Over the last two years Ross’s competition has developed and increase its online shopping presence in order to compete with other online retailers including eBay and the big department stores like Macy’s, JcPenny’s and Kohl’s. Ross has made the business decision to not sell its apparel online. Ross’s belief is that if they can keep quality merchandise in its stores at a low cost and which will continue to attract and maintain its customer base. Ross is dedicated to providing low cost quality merchandise to its

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