A Brief History of Ross Stores, Inc. (ROST)

Ross Stores, Inc., commonly known as Ross Dress for Less, is an American chain of off-price department stores headquartered in Dublin, California. The company was founded in 1950 by Morris "Morrie" Ross. The first store was located in San Bruno, California, and over the years, it has grown to become a well-known name in the retail industry.

1950: The first Ross Store was opened by Morris Ross in San Bruno, California. The store primarily sold discounted men's and women's clothing, offering name-brand items at reduced prices.

1982: A pivotal year for the company. Morris Ross sold his stores to a group of investors led by Mervin Morris, the founder of Mervyn's stores. This acquisition marked the beginning of significant growth and transformation for the brand.

Under new leadership, Ross Stores, Inc. focused on a new business model. The company positioned itself as an off-price retailer, specializing in offering high-quality, name-brand and designer apparel, footwear, and home fashions at low prices.

• 1986: Ross expanded significantly, growing from a mere six stores to 107 stores across the western United States.
• 1995: The company went public, listing on the NASDAQ stock exchange under the ticker symbol ROST, which provided it with capital to fuel further expansion.
• 2000s: Ross continued to thrive and grow, opening hundreds of new stores and entering new markets across the United States.
• 2011: The company celebrated its 1000th store opening, a significant milestone that underscored its sustained growth and popularity among consumers.
• 2014: Barbara Rentler was appointed CEO, making her one of the few female CEOs in the retail industry. This leadership change marked a new era for Ross Stores, Inc.

Today, Ross Stores, Inc. operates over 1,800 stores under the Ross Dress for Less and dd's Discounts brands. The company remains committed to its off-price model, offering customers a wide range of products at prices that are 20%-60% below those of traditional department and specialty stores.

Who Owns Ross Stores, Inc. (ROST)

Ross Stores, Inc. (ROST) is a prominent American off-price department store chain with a broad ownership structure that includes institutional investors, mutual funds, and individual shareholders.

Here are the key ownership details:

• Institutional Investors: A significant portion of Ross Stores' shares is owned by institutional investors, including investment management firms and pension funds. These institutions typically have large holdings and considerable influence over the company's corporate governance.
• Mutual Funds: Mutual funds also hold a substantial stake in Ross Stores, Inc. These investment vehicles pool money from many investors to purchase a diversified portfolio of stocks, including ROST shares.
• Individual Shareholders: Individual investors, including company executives and employees, own a portion of Ross Stores. These shareholders may hold shares through direct investments or employee stock ownership plans (ESOPs).
• Company Insiders: Executives and board members of Ross Stores, Inc. hold shares in the company. Insider ownership aligns the interests of the company's leadership with those of the shareholders.

Strategic institutional investors and mutual funds often have the largest share of ownership, contributing to the overall stability and growth of Ross Stores, Inc.

Ross Stores, Inc. (ROST) Mission Statement

The mission of Ross Stores, Inc. (ROST) is to offer customers a treasure hunt shopping experience by providing them with a wide assortment of high-quality, name-brand merchandise at significant discounts compared to department and specialty stores.

Key elements of Ross Stores' mission include:

• Value: Delivering exceptional value through significant discounts on a wide variety of merchandise.
• Quality: Offering high-quality, name-brand products that meet customers' expectations.
• Selection: Providing a vast selection of merchandise across various categories, including apparel, home goods, and accessories.
• Customer Experience: Creating a fun and engaging shopping experience that encourages customers to discover new products and deals each time they visit a Ross store.

How Ross Stores, Inc. (ROST) Works

Ross Stores, Inc. (ROST) operates a chain of off-price retail apparel and home fashion stores, primarily under the brand names "Ross Dress for Less" and "dd's DISCOUNTS." The company focuses on offering significant discounts on name-brand and designer products, creating a treasure hunt shopping experience for its customers.

Ross Stores, Inc. employs a distinctive business model that distinguishes it from traditional department stores and other retailers:

• Off-Price Retailing: The company purchases excess inventory, closeouts, and irregulars from manufacturers and other retailers at a discount, which allows it to offer products to consumers at lower prices.
• Value Proposition: The primary appeal to customers is the combination of high-quality, branded merchandise at reduced prices. This value proposition attracts a wide range of budget-conscious shoppers.
• Lean Operations: Ross Stores maintains a lean operating structure to keep costs low, including minimal advertising expenditure and efficient logistics.

The company's supply chain management is a crucial aspect of its operations:

• Vendor Relationships: Ross Stores maintains strong relationships with a broad network of suppliers, including manufacturers, distributors, and other retailers.
• Flexibility: The company capitalizes on its ability to quickly adapt to changing market conditions by purchasing opportunistically and managing inventory levels effectively.
• Distribution Centers: Ross Stores operates several distribution centers that facilitate the rapid movement of goods to its retail locations, ensuring fresh and varied inventory regularly.

Ross Stores' retail locations are designed to maximize the shopping experience and operational efficiency:

• Store Layout: Stores have a no-frills layout that focuses on displaying a wide variety of merchandise with ease of access, emphasizing the "treasure hunt" experience.
• Staff Training: Employees are trained to be knowledgeable about the products and to assist customers in finding the best deals, enhancing customer satisfaction.
• Merchandising: The company frequently updates its merchandise to keep the selection fresh and appealing, encouraging repeat visits from customers.

Ross Stores places a significant emphasis on the customer experience:

• Discounted Prices: Offering name-brand and designer products at substantial discounts is a core component of the customer value proposition.
• Treasure Hunt Shopping: The ever-changing inventory creates a sense of exploration and excitement for customers, who often return to see new arrivals.
• Return Policy: The company offers a flexible return policy to ensure customer satisfaction and build loyalty.

How Ross Stores, Inc. (ROST) Makes Money

Ross Stores, Inc. (ROST) primarily operates as an off-price retailer that offers value to its customers by selling branded and designer apparel, footwear, accessories, and home furnishings at discounted prices. The company employs several strategic approaches to ensure profitability and maintain its market position. Below are the key ways Ross Stores, Inc. makes money:

• Retail Sales: The primary source of revenue for Ross Stores, Inc. comes from the sale of merchandise in its Ross Dress for Less and dd’s DISCOUNTS stores. By offering a wide range of products at prices significantly lower than those found at traditional department and specialty stores, Ross attracts cost-conscious consumers looking for bargains.
• Strategic Sourcing: Ross Stores, Inc. capitalizes on its strong relationships with vendors and manufacturers to source products at low costs. The company often purchases excess inventory, overstock, and discontinued items from various brands at reduced prices, which allows it to pass on savings to customers while maintaining a healthy profit margin.
• Inventory Management: Efficient inventory management is crucial to Ross Stores’ business model. The company employs a sophisticated distribution and logistics system to ensure that stores are stocked with desirable products. This enables quick turnover of inventory, reducing the need for markdowns and minimizing inventory holding costs.
• Cost Control: Ross Stores, Inc. keeps its operating costs low by employing a no-frills store design approach and minimizing expenses related to advertising and store decor. This cost-control strategy allows the company to maintain lower prices for its customers while still generating a profit.
• Expansion: Opening new stores in strategic locations helps Ross Stores, Inc. to tap into new markets and increase its customer base. The company focuses on expanding in areas with a high density of value-conscious consumers, thereby boosting sales and revenue.
• Customer Loyalty: Ross Stores, Inc. benefits from a loyal customer base that values the treasure-hunt shopping experience. The frequent rotation of merchandise encourages repeat visits, driving consistent foot traffic and steady sales.

By leveraging these strategies, Ross Stores, Inc. effectively maximizes its profitability and maintains a strong presence in the competitive retail industry.