Ross 2014 Annual Report Download - page 14

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 1,210 locations in 33 states, the District
of Columbia and Guam, as of January 31, 2015. 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 152 dd’s DISCOUNTS stores in 15 states as of January 31, 2015. 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, 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 31, 2015, February 1, 2014, and February 2, 2013 as fiscal 2014, fiscal 2013, and
fiscal 2012, respectively. Fiscal 2014 and 2013 were each 52-week years. Fiscal 2012 was a 53-week year.
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.
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.
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