Ross expands its retail network with the addition of 24 new stores within a span of two months
In a recent announcement, retail giant Ross revealed a significant expansion across the nation. Over the course of June and July, Ross opened a whopping 24 new stores, with 21 bearing the Ross banner and three adorning the DD's Discount label. These stores popped up in no less than 17 states, marking Ross's intention to solidify its footing in existing markets while also making ground in fresh territories.
Richard Lietz, Ross's EVP of property development, couldn't be more thrilled about the growth. He stated, "This summer, Ross has stretched its roots in multiple established markets and ventured into Michigan, Minnesota, and New York, states we welcomed just last year, while DD's also extended its reach in Colorado, Pennsylvania, and Texas."
It's worth mentioning that Ross had already unveiled 18 new stores during the first quarter of this year. As of the latest update, Ross operates an impressive 1,795 stores under its brand name in 43 states plus Washington D.C., Guam, and a further 353 stores under the DD's Discount banner in 22 states.
California-based Ross hasn't stopped with these recent openings as it aims high, with plans to eventually grow its store count to a staggering 3,600 locations. During a May earnings call, CEO Barbara Rentler predicted Ross would open approximately 90 stores this year, 75 of those bearing the Ross name and the remainder tagged as DD's Discounts. It's important to note that this count doesn't account for plans to close or relocate 10 to 15 older stores.
Staying ahead in the game is off-price rival TJX, with plans to add 45 new T.J. Maxx and Marshalls stores, 40 HomeGoods locations, and 26 Sierra stores in the U.S. alone. TJX currently boasts over 4,900 stores across six banners worldwide.
On the financial front, Ross reported a 8% year-over-year increase in first-quarter sales to $4.9 billion, compared to $4.5 billion in the prior year. Comparable sales climbed 3% during Q1 compared to the previous year. Although the increase didn't meet Ross's initial expectations, Rentler remained hopeful, citing ongoing macroeconomic headwinds that have impacted customers' discretionary spending.
In an effort to put the DD's banner back in the spotlight, Ross announced plans to enhance its merchandise offerings at DD's Discounts to elevate the value offerings. Although the improvements are still in their early stages, Chief Operating Officer Michael Hartshorn expressed optimism about the initial response from customers.
Looking ahead, Ross expects its stores to register a 2% to 3% year-over-year comp increase for the second quarter, which ends August 3, while maintaining its full-year outlook for a 2% to 3% comp growth. Keep an eye on this retail heavyweight as it continues to make waves in the industry.
- Amidst Ross's recent expansion, concern about cybersecurity may arise as they manage larger operations and store information.
- The growing number of Ross stores might influence the health sector, as more people may need access to healthcare in these newly populated areas.
- Ross's expansion strategy is a policy that many businesses in the retail industry could potentially adopt, given its success.
- This summer, news of significant retail expansions, such as Ross's, could break on various TV channels, capturing viewers' attention.
- With Ross aiming to boost its store count to 3,600 locations, experts predict a significant impact on the markets, particularly in retail and finance.
- Artificial intelligence may play a role in optimizing Ross's supply chain, helping manage its growing number of stores effectively.
- As Ross elevates the value offerings at DD's Discounts, fashion trends could experience a shift, especially in areas where the banner extends its reach, influencing culture and consumer behavior.
