Ross 2015 Annual Report Download - page 14

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12
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
fashion stores—Ross Dress for Less® (“Ross”) and dd’s DISCOUNTS®.
Ross is the largest off-price apparel and home fashion chain in the United States, with 1,274 locations in 34 states, the
District of Columbia and Guam, as of January 30, 2016. Ross offers first-quality, in-season, name brand and designer
apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and
specialty store regular prices every day. Ross' target customers are primarily from middle income households.
We also operate 172 dd’s DISCOUNTS stores in 15 states as of January 30, 2016. dd's DISCOUNTS features more
moderately-priced first-quality, in-season, name brand apparel, accessories, footwear, and home fashions for the entire
family at savings of 20% to 70% off moderate department and discount store regular prices every day. The typical dd’s
DISCOUNTS store is located in an established shopping center in a densely populated urban or suburban neighborhood and
its target customers typically come from households with more moderate incomes than Ross customers.
The merchant, store field, and distribution organizations for Ross and dd’s DISCOUNTS are separate and distinct. The two
chains share certain other corporate and support services.
Both our Ross and dd's DISCOUNTS brands target value-conscious women and men between the ages of 18 and 54. The
decisions we make, from merchandising, purchasing, and pricing, to the locations of our stores, are based on these
customer profiles. We believe that both brands 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 reflects the expectations of the off-price customer.
• Manage real estate growth to compete effectively across all our markets.
We refer to our fiscal years ended January 30, 2016, January 31, 2015, and February 1, 2014 as fiscal 2015, fiscal 2014,
and fiscal 2013, respectively, all of which were 52-week years.
Merchandising, Purchasing, and Pricing
We seek to provide our customers with a wide assortment of first-quality, in-season, brand name and designer apparel,
accessories, footwear, and home merchandise for the entire family at savings of 20% to 60% below department and
specialty store regular prices every day at Ross, and 20% to 70% 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 reflected in our advertising, which emphasizes a strong value
message. Our stores offer a treasure-hunt shopping experience where customers can find great savings every day on a
broad assortment of brand name bargains for the family and the home.