Ross 2010 Annual Report Download - page 10

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8
PART I
ITEM 1. BUSINESS.
Ross Stores, Inc. and its subsidiaries (“we” or the “Company”) operate two brands of off-price retail apparel and home
accessories stores. At January 29, 2011, we operated a total of 1,055 stores, of which 988 were Ross Dress for Less® (“Ross”)
locations in 27 states and Guam and 67 were dd’s DISCOUNTS® stores in six states. Both brands target value-conscious women
and men between the ages of 18 and 54. Ross target customers are primarily from middle income households, while the dd’s
DISCOUNTS target customer is typically from more moderate income households. The decisions we make, from merchandising,
purchasing, and pricing, to the locations of our stores, are based on these customer profi les.
Ross offers fi rst-quality, in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire
family at everyday savings of 20 to 60 percent off department and specialty store regular prices. dd’s DISCOUNTS features a
more moderately-priced assortment of fi rst-quality, in-season, name brand apparel, accessories, footwear, and home fashions for
the entire family at everyday savings of 20 to 70 percent off moderate department and discount store regular prices. We believe
that both Ross and dd’s DISCOUNTS derive a competitive advantage by offering a wide assortment of product within each of our
merchandise categories in organized and easy-to-shop store environments.
Our mission is to offer competitive values to our target customers by focusing on the following key strategic objectives:
• Maintain an appropriate level of recognizable brands, labels, and fashions at strong discounts throughout the store.
• Meet customer needs on a local basis.
• Deliver an in-store shopping experience that refl ects the expectations of the off-price customer.
• Manage real estate growth to compete effectively across all our markets.
We refer to our fi scal years ended January 29, 2011, January 30, 2010, and January 31, 2009 as fi scal 2010, fi scal 2009, and
fi s c a l 2 0 0 8 , r e s p e c t i v e l y .
Merchandising, Purchasing, and Pricing
We seek to provide our customers with a wide assortment of fi rst-quality, in-season, brand-name and designer apparel,
accessories, footwear, and home merchandise for the entire family at everyday savings of 20 to 60 percent below department
and specialty store regular prices at Ross, and 20 to 70 percent below moderate department and discount store regular prices
at dd’s DISCOUNTS. We sell recognizable brand-name merchandise that is current and fashionable in each category. New
merchandise typically is received from three to six times per week at both Ross and dd’s DISCOUNTS stores. Our buyers review
their merchandise assortments on a weekly basis, enabling them to respond to selling trends and purchasing opportunities in the
market. Our merchandising strategy is refl ected in our advertising, which emphasizes a strong value message. Our stores offer
a treasure-hunt shopping experience where customers can fi nd great savings every day on a broad assortment of brand-name
bargains for the family and the home.
Merchandising. Our merchandising strategy incorporates a combination of off-price buying techniques to purchase advance-
of-season, in-season, and past-season merchandise for both Ross and dd’s DISCOUNTS. We believe nationally recognized name
brands sold at compelling discounts will continue to be an important determinant of our success. We generally leave the brand-
name label on the merchandise we sell.