Ross Stores Inc. is a bright beacon of hope in the 2019’s challenging retail market. While nearly 6,000 locations have been reported to close sometime this year due to underperforming sales, both company concepts (Ross Dress for Less and dd’s Discounts) are planning an expansion. According to CSG’s historical analysis, over the last five years, Ross has increased sales revenue by an average of nearly 8% per year. This year alone, the retailer has opened 22 locations across 12 different states with plans to open a total of 100 new stores between the two concepts.
Even in the wake of the tariff hike on $200B worth of Chinese goods going from 10% to 25%, Ross executives are confident their growth strategy will enable them to meet their goals. In a press statement Jim Fassio, President and Chief Development Officer, stated executives were looking to grow Ross Dress for Less to a total of 2,400 stores, and dd’s Discounts to 600. However, the company’s announcement came before the proposed tariffs on imports from Mexico. These new tariffs would have a notable impact on the retail market outside of the current Chinese tariffs.
The Apparel Specialty Stores Plus database currently has over 4,500 potential prospects. There are also many retailers, such as those found in the Drug & HBC Chains, and Department Stores & Shoe Retailers databases, who sell apparel and may be looking for new suppliers to fill product gaps due to the rise in import taxes. With such uncertainty surrounding the retail market in every category, it’s essential for suppliers to branch out to maximize sales potential.