While many big-name retailers are closing stores to survive, Ross Stores is doing the exact opposite.
The California-based discount chain just opened 36 new Ross Dress for Less stores and four dd’s Discounts across 17 states this fall — and it’s not slowing down. The company plans to open 90 more stores before the end of the year.
“This fall, we continued to strengthen our brand presence by opening stores in existing markets and expanding in new markets,” said Richard Lietz, executive vice president of Property Development.
Ross is adding new stores across the Midwest and Northeast — including in Michigan, New Jersey, and New York — while dd’s is growing in California and Texas.
Lietz said Ross remains confident about its growth: “We see plenty of opportunity to grow to at least 2,900 Ross Dress for Less and 700 dd’s Discounts locations over time.”
That optimism makes Ross an outlier in today’s retail world. Chains like Macy’s and Kohl’s are shrinking their footprints to stay profitable, while even grocery and pharmacy giants like Walgreens and Kroger are scaling back.
Experts say off-price retailers like Ross, T.J. Maxx, and Burlington are thriving because shoppers are hunting for deals. “Off-price has been a growth segment for several years,” said John Mercer of Coresight Research. “They’re structural market-share winners attracting lower-income shoppers and those trading down from midtier retailers.”
CFRA analyst Zach Warring says the model works because stores like Ross buy excess inventory from other retailers at a fraction of the cost — then sell it for 30% to 70% off retail prices.
In other words, while other retailers are pulling back, Ross is winning big by helping shoppers stretch their dollars.
Ross currently operates 2,273 Ross Dress for Less and dd’s Discounts stores across 44 states, D.C., Guam, and Puerto Rico.