Ross 2015 Annual Report Download - page 23

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on social media platforms is virtually immediate as is its impact. Many social media platforms immediately publish the
content their subscribers and participants post, often without filters or checks on accuracy of the content posted. The
opportunity for dissemination of information, including inaccurate information, is seemingly limitless and readily available.
Information concerning our Company may be posted on such platforms at any time. Information posted may be adverse to
our interests or may be inaccurate, each of which could negatively impact sales, diminish customer trust, reduce employee
morale and productivity, and lead to difficulties in recruiting and retaining qualified associates. The harm may be immediate,
without affording us an opportunity for redress or correction.
We must continually attract, train, and retain associates with the retail talent necessary to execute our off-price
retail strategies.
Like other retailers, we face challenges in recruiting and retaining sufficient talent in our buying organization, management,
and other key areas. Many of our retail store associates are in entry level or part-time positions with historically high rates of
turnover. Our ability to control labor costs is subject to numerous external factors, including prevailing wage rates and health
and other insurance costs, as well as the impact of legislation or regulations governing minimum wage or healthcare
benefits.
Any increase in labor costs may adversely impact our profitability or, if we fail to pay such higher wages, may result in
increased turnover. Excessive turnover may result in higher costs associated with finding, hiring and training new associates.
If we cannot hire enough qualified associates, or if there is a disruption in the supply of personnel we hire from third-party
providers, especially during our peak season, our operations could be negatively impacted.
Because of the distinctive nature of our off-price model, we must also attract, train, and retain our key associates across the
Company, including within our buying organization. The loss of one or more of our key personnel or the inability to effectively
identify a suitable successor for a key role could have a material adverse effect on our business. There is no assurance that
we will be able to attract or retain highly qualified associates in the future, which could have a material adverse effect on our
growth, operations, and financial position.
We must effectively advertise and market our business.
Customer traffic and demand for our merchandise is influenced by our advertising and marketing activities, the name
recognition and reputation of our brands, and the location of our stores. Although we use marketing and advertising
programs to attract customers to our stores, particularly though television, our competitors may spend more or use different
approaches, which could prove to provide them with a competitive advantage. Our advertising and other promotional
programs may not be effective or may be perceived negatively, or could require increased expenditures, which could
adversely affect sales or increase costs.
We are subject to risks associated with importing merchandise from other countries.
A portion of the products sold in our stores is sourced from foreign vendors predominantly in Asia (including China). We also
buy product from foreign sources indirectly through domestic vendors. Although our foreign purchases of merchandise are
negotiated and paid for in U.S. dollars, decreases in the value of the U.S. dollar relative to foreign currencies could increase
the cost of products we purchase from overseas vendors.
To the extent that our vendors are located overseas or rely on overseas sources for a large portion of their products, any
event causing a disruption of imports, including the imposition of import restrictions, war, and acts of terrorism could
adversely affect our business. The flow of merchandise from our vendors could also be adversely affected by financial or
political instability in any of the countries in which the goods we purchase are manufactured, if the instability affects the
production or export of merchandise from those countries. Trade restrictions in the form of tariffs or quotas, or both,
applicable to the products we sell could also affect the importation of those products and could increase the cost and reduce
the supply of products available to us.
When we are the importer of record, we may be subject to regulatory or other requirements similar to those applicable to a
manufacturer. These risks and uncertainties include import duties and quotas, compliance with anti-dumping regulations,
work stoppages, economic uncertainties and adverse economic conditions (including inflation and recession), foreign