Ross 2014 Annual Report Download - page 19

We are subject to operating risks as we attempt to execute on our merchandising and growth strategies.
The continued success of our business depends in part upon our ability to increase sales at our existing store locations, to
open new stores, and to operate stores on a profitable basis. Our existing strategies and store and distribution center expansion
programs may not result in a continuation of our anticipated revenue or profit growth. In executing our off-price retail strategies
and working to improve efficiencies, expand our store network, and reduce our costs, we face a number of operational risks,
including our ability to:
• Attract, train, and retain associates with the retail talent necessary to execute our strategies.
• Effectively operate and continually upgrade our various supply chain, store, core merchandising, and other information
systems.
• Improve our merchandising and transaction processing capabilities, and the reliability and security of our data
communication systems, through implementation of new processes and systems enhancements.
• Protect against security breaches, including cyber-attacks on our transaction processing and computer information systems,
that could result in the theft, transfer or unauthorized disclosure of customer, credit card, employee or other private and
valuable information that we collect and process in the ordinary course of our business, and avoid resulting damage to our
reputation, loss of customer confidence, exposure to litigation and regulatory action, unanticipated costs and disruption of
our operations.
•฀ Improve new store sales and profitability, especially in newer regions and markets.
• Add capacity to our existing distribution centers, find new distribution center sites, and build out planned additional
distribution centers timely and cost effectively.
• Achieve and maintain targeted levels of productivity and efficiency in our existing and new distribution centers.
• Lease or acquire acceptable new store sites with favorable demographics and long-term financial returns.
• Identify and successfully enter new geographic markets.
• Achieve planned gross margins by effectively managing inventories, markdowns, and inventory shortage.
• Effectively manage all operating costs of the business, the largest of which are payroll and benefit costs for store and
distribution center employees.
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 2. PROPERTIES
At January 31, 2015, we operated a total of 1,362 stores, of which 1,210 were Ross locations in 33 states, the District of
Columbia and Guam, and 152 were dd’s DISCOUNTS stores in 15 states. All stores are leased, with the exception of three
locations which we own.
During fiscal 2014, we opened 73 new Ross stores and closed nine existing stores. The average approximate Ross store size is
28,800 square feet.
During fiscal 2014, we opened 22 new dd’s DISCOUNTS stores and closed no existing stores. The average approximate dd’s
DISCOUNTS store size is 23,400 square feet.
During fiscal 2014, no one store accounted for more than 1% of our sales.
We carry earthquake insurance to help mitigate the risk of financial loss due to an earthquake.
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