Ross 2009 Annual Report Download - page 12

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— 10 —
PART I
ITEM 1. BUSINESS.
Ross Stores, Inc. and its subsidiaries (“we” or the “Company”) operate two chains of off-price retail apparel and home
accessories stores. At January 30, 2010, we operated a total of 1,005 stores, of which 953 were Ross Dress for Less® (“Ross”)
locations in 27 states and Guam and 52 were dd’s DISCOUNTS® stores in four states. Both chains 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 profiles.
Ross offers first-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 first-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 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, 2010, January 31, 2009, and February 2, 2008 as fiscal 2009, fiscal 2008,
and fiscal 2007, respectively.
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 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 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.
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.