Ross 2009 Annual Report Download - page 16

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We also utilize third-party cross docks to distribute merchandise to stores on a regional basis. Shipments are made by contract
carriers to the stores from three to six times per week depending on location.
We believe that our existing distribution centers with their current expansion capabilities will provide adequate processing
capacity to support store growth over the next few years. Additional information on the size and locations of our distribution
centers and warehouse facilities is found under “Properties” in Item 2.
Advertising
We rely primarily on television advertising to communicate the Ross value proposition — brand-name merchandise at low
everyday prices. This strategy reflects our belief that television is the most efficient and cost-effective medium for communicating
everyday savings on a wide selection of brand-name bargains for both the family and home. Advertising for dd’s DISCOUNTS is
primarily focused on new store grand openings and local grass roots initiatives.
Trademarks
The trademarks for Ross Dress For Less® and dd’s DISCOUNTS® have been registered with the United States Patent and
Trademark Office.
Employees
As of January 30, 2010, we had approximately 45,600 total employees, including an estimated 32,300 part-time employees.
Additionally, we hire temporary employees — especially during the peak seasons. Our employees are non-union. Management
considers the relationship between the Company and our employees to be good.
Competition
We believe the principal competitive factors in the off-price retail apparel and home accessories industry are offering significant
discounts on brand-name merchandise, offering a well-balanced assortment that appeals to our target customer, and
consistently providing store environments that are convenient and easy to shop. To execute this concept, we continue to make
strategic investments in our buying organization. As discussed under Information Systems, we also recently completed the
rollout in fiscal 2009 of additional enhancements to our merchandise planning system to strengthen our ability to plan, buy, and
allocate product based on more local versus regional trends. We believe that we are well positioned to compete on the basis of
each of these factors.
Nevertheless, the retail apparel market is highly fragmented and competitive. We face a challenging macro-economic and retail
environment that creates intense competition for business from department stores, specialty stores, discount stores, warehouse
stores, other off-price retailers, and manufacturer-owned outlet stores, many of which are units of large national or regional
chains that have substantially greater resources. We also compete to some degree with retailers that sell apparel and home
accessories through catalogs or over the internet. The retail apparel and home-related businesses may become even more
competitive in the future.
dd’s DISCOUNTS
At January 30, 2010, we operated 52 dd’s DISCOUNTS in four states: 39 in California, 7 in Texas, 5 in Florida, and 1 in Arizona.
At January 31, 2009, we had 39 dd’s DISCOUNTS stores in California, 6 in Florida, 5 in Texas, and 2 in Arizona, for a total of 52
stores. This smaller off-price concept targets the needs of households with more moderate incomes than Ross customers. We
believe this is one of the fastest growing demographic markets in the country. dd’s DISCOUNTS features a moderately-priced
assortment of first-quality, in-season, name brand apparel, accessories, footwear, and home fashions at everyday savings of 20
to 70 percent off moderate department and discount store regular prices.