Dive Brief:
Expanding its retail portfolio, Ross opens 28 additional stores, finalizing its growth targets for the year 2021.
Ross Stores is gearing up to finish its store expansion spree for the year, having planned to open its latest locations this month, wrapping up its 2021 growth objectives.
Earlier in September and October, the retailer began operations for 28 new stores, including 18 Ross Dress for Less and 10 DD's Discount locations. These additions to Ross's empire mark a total of 65 new stores that will be operational this year, as revealed in their press release. Operating in 40 states, the District of Columbia, and Guam, Ross Stores now maintain 1,924 off-price apparel and home fashion stores.
Initially, Ross had aimed to operate 3,000 stores, a goal that still stands strong, as evidenced by a statement by Gregg McGillis, the group executive vice president for property development.
Ross's aggressive expansion is indicative of the robust health of the off-price sector and its reliance on brick-and-mortar stores. Even during the pandemic's peak, Ross opened almost 40 new stores, although that was lower compared to the 98 new stores it opened in 2019. Despite being hard-hit by the pandemic due to their lack of e-commerce, the company continues to press forward, unafraid of the challenges ahead.
The off-price retail segment is holding its ground and is projected to thrive amid the supply chain issues and mounting freight costs plaguing the retail industry. According to Deutsche Bank analysts, Ross Stores, along with Burlington and TJX, are expected to come out stronger in 2022 compared to other retailers. This resilience stems from consumers increasingly gravitating towards bargain hunting and value shopping, combined with improved sourcing opportunities as inventory and promotions stabilize.
Dive Insight:
Ross Stores' ongoing store expansion plans display their confidence in physical retail stores as a lucrative competitive advantage, even post-pandemic. Despite economic uncertainties like inflation and trade policy volatility impacting their profitability, they remain steadfast in their ambitious goals.
While Ross aims to open an estimated 90 new stores in 2025, they are concurrently working to optimize their store portfolio by relocating or closing 10 to 15 older stores. This suggests a focus on modernizing their store network and prioritizing growth markets. Each new Ross Store contributes significant employment opportunities, with each store employing 55 to 90 people.
Ross Stores' expansion strategy is centered around robust growth through new store openings, store relocations, and closures, coupled with a careful focus on sustaining profitability amid economic uncertainties. This approach underscores the company's belief in the off-price retail model and physical stores as primary assets post-pandemic.
- As Ross Stores enhances its store expansion, weather conditions could potentially impact the opening of the latest locations this month.
- The breaking news about market volatilities and war conflicts might affect Ross Stores' financial growth objectives moving forward.
- Ross Stores' aggressive expansion strategy is complemented by the advancements in AI, as it aids in optimizing store locations and improving supply chain management.
- Amid the ongoing pandemic, Ross Stores' resilience is notable, but concerns over public health and safety remain, affecting consumer behavior and retail sales.
- In the context of shifting fashion trends and evolving consumer preferences, Ross Stores' traditional retail model must adapt to remain competitive in the industry.
- Cybersecurity policy reforms are essential to protect the sensitive financial data of customers and businesses, including Ross Stores, from cyber threats.
- The retail sector's focus on sustainability and corporate social responsibility can offer opportunities for Ross Stores to create a more socially responsible and eco-friendly brand image.
- As Ross Stores continues to expand, it is crucial to have a comprehensive understanding of the cultural and demographic nuances of the target markets to ensure long-term business success.
