Ross 2009 Annual Report Download - page 15

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We use point-of-sale (“POS”) hardware and software systems in all stores, which minimizes transaction time for the customer
at the checkout counter by electronically scanning each ticket at the point of sale and authorizing personal checks and credit
cards in a matter of seconds. In addition, the POS systems allow us to accept debit cards and electronic gift cards from
customers. For Ross and dd’s DISCOUNTS combined, approximately 58% of payments in fiscal 2009 and fiscal 2008 were
made with credit cards and debit cards. We provide cash, credit card, and debit card refunds on all merchandise (not used,
worn, or altered) returned with a receipt within 30 days. Merchandise returns having a receipt older than 30 days are exchanged
or credited with store credit.
Operating Costs
Consistent with the other aspects of our business strategy, we strive to keep operating costs as low as possible. Among the
factors which have enabled us to keep operating costs low are:
• Labor costs that generally are lower than full-price department and specialty stores due to a store design that creates a
self-service retail format and due to the utilization of labor saving technologies.
• Economies of scale with respect to general and administrative costs as a result of centralized merchandising, marketing,
and purchasing decisions.
• Flexible store layout criteria which facilitates conversion of existing buildings to our formats.
Information Systems
We continue to invest in new information systems and technology to provide a platform for growth over the next several years.
Recent initiatives include the following:
• We completed the rollout of demand forecasting software and related process changes designed to strengthen our
merchandise planning effectiveness for Ross. We expect this initiative to drive gradual increases over time in store sales
productivity and profitability by improving our ability to plan, buy, and allocate product at a more local level.
• We implemented additional supply chain enhancements to support expansion and improvement of our supply chain
network. We also implemented a new labor time and attendance system at all of our distribution centers.
• We completed the rollout of new tools to better support the continued growth of our import business. These new tools
provide our merchants with greater visibility into item cost components and inbound movement of import products.
• We made enhancements to our POS systems to reduce customer transaction and wait times.
• We implemented enhanced labor scheduling capabilities to give our stores the ability to better align the workforce with
in-store activities.
• We upgraded our loss prevention software to allow for greater in-depth analysis and reporting. We also invested in additional
store video surveillance systems to provide centralized remote monitoring.
• We implemented new on-line tools to assist our stores in their recruiting and hiring efforts. These new tools are designed to
help our store managers expedite the hiring process and increase the quality of hiring decisions.
Distribution
We have four distribution processing facilities — two in California and one each in Pennsylvania and South Carolina. We ship
all of our merchandise to our stores through these distribution centers, which are large, highly automated, and built to suit our
specific off-price business model.
In addition, we own one and lease three other warehouse facilities for packaway storage. We use other third-party facilities as
needed for storage of packaway inventory.