Ross 2009 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2009 Ross annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 76

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76

— 4 —
Our micro-merchandising tools have been designed to help us more accurately plan,
buy and allocate merchandise down to a local level. We believe this more detailed
planning process will strengthen our ability to get the right merchandise to the right store
at the right time. It is also expected to enhance sales and merchandise gross margin
performance over the long term in both new and existing markets.
Resilient and Flexible Off-Price Business Model
Consumers responded to the challenging economic environment in 2009 by looking for
more ways to save money. We were able to capitalize on our favorable position as a value
retailer because of dedicated associates throughout all areas of our business who
executed our off-price strategies with unwavering focus and discipline.
By consistently stocking our stores with great bargains, operating our business on lower
inventories to drive faster turns with fewer markdowns, and by strictly controlling our
expenses, we were able to deliver record sales and earnings in one of the most
challenging economic and retail climates.
Looking ahead, we know that offering our customers the best values possible on a wide
array of bargains is, and always will be, the key to our success. We continue to invest in
our merchandise organization to help ensure that we have ongoing access to plenty of
quality name brand goods to enable us to grow profitably in the future. This allows us to
have hundreds of Ross and dd’s DISCOUNTS merchants in the market daily, sourcing
product from thousands of vendors.
Significant Opportunities for Growth
Today, we operate over 1,000 Ross and dd’s DISCOUNTS locations combined in just
27 states, giving us significant room for future growth. Our planned unit growth of
4% to 5% in 2010 is projected to accelerate to about 7% in 2011, when we expect to
enter new geographic markets for both chains. Plenty of expansion opportunity exists
30%
24%
9%
11%
13%
13%
30% Ladies
24% Home Accents, Bed and Bath
13% Men’s
13% Accessories, Lingerie,
Fine Jewelry, Fragrances
11% Shoes
9% Children’s
Merchandise Model
Our planned unit growth of 4% to 5% in 2010 is
projected to accelerate to about 7% in 2011, when
we expect to enter new geographic markets.