Published: 2023-07-05
Company History
Ross Stores
Study the financial data for Ross Stores.
Ross Stores Inc. is an American discount retailer based in Dublin, California, operating under the Ross Dress for Less brand. The company is considered the largest off-price retailer, with stores covering large portions of the state.
| Founded | 1982 |
| Founder |
Morris Ross Bill Isackson |
| Headquarters | Dublin, California, United States (since 2014) |
| Key people |
Barbara Rentler (CEO) Michael Kobayashi (President) Michael J. Hartshorn (COO) Brian Morrow (President and Chief Merchandising Officer, dd's DISCOUNTS) |
| Products | Clothing, shoes, bedding, toys, furniture, jewelry, beauty products, housewares, bath products, home accessories, gifts |
| Subsidiaries | dd's Discounts |
| Website | rossstores.com |
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1950: Opening of the first department store
Morris Ross opens his first department store in San Bruno, California. Working 85 hours a week, he handles both purchasing and bookkeeping for his store.
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1958: Sale of the store
Morris Ross sells his company to William Isackson to become a residential and commercial real estate developer himself. The new owner expands the company to six offices in San Bruno, Pacifica, Novato, Vacaville, Redwood City and Castro Valley.
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1982: Restructuring in favor of discounters
When the company is acquired by a group of investors that included Mervyn Morris, founder of the Mervyn's chain, it was restructured to focus on low-cost stores. Under the leadership of Stuart G. Moldaw and Donald Rowlett, Ross expanded to 107 stores within three years. Expansion is often accomplished by taking over empty stores in malls and other vacant locations. Neither entrepreneur is new to the industry. Moldaw, who will become president of Ross after the acquisition, previously founded Pic-A-Dilly, Country Casuals and The Athletic Shoe Factory. Rowlett, in turn, founded the F.W. Woolworth subsidiary J. Brannam and built it into a 36-store chain. The new company's rapid success was based on selling brand-name men's, women's, and children's clothing, housewares, shoes, and accessories at deeply discounted prices.
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1985: Initial public offering
The company goes public. It is traded on the Nasdaq under the symbol ROST. The cash infusion is used to further expand the store network, which grows 79% to $375.9 million by the end of the year.
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1986: Rapid growth despite setbacks: Ross achieves $534 million in sales and closes unprofitable stores
The company grows rapidly. By the end of the fiscal year, it has sales of $534 million and 121 stores in 16 states. But there is also a setback: 25 unprofitable stores in Texas and Oklahoma have to be closed because they reduce the company's profits. The $41.4 million loss is largely due to these closures.
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1987: Slowdown in growth
Co-founder Rowlett leaves the company. Norman A. Ferber, executive vice president of merchandising, marketing and sales for Ross, is named his successor as president and COO.
To focus on investments in management and infrastructure and to ensure sustainable growth, Ross slows its pace of expansion. Over the next two years, the company plans to open only 35 new stores, all in existing markets.
After a loss of more than $40 million last year, Ross returns to profitability this year with a profit of $11.5 million. -
1988: New CEO Ferber initiates restructuring to increase profitability
Ferber takes over as CEO and is directly involved in a far-reaching change process aimed at restoring the company's profitability. Part of this strategy involves the elimination of the housewares departments, which are replaced by cosmetics and fragrance departments.
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1989: New sales high
At the end of the year, Ross operates 156 stores in 15 states with annual sales of $741 million.
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1990: Return to core strategy boosts sales to $804 million
The differentiation strategy at the end of the 1980s leads to a decline in sales as the company moves away from its roots in the low-price segment. After an intensive analysis, the company develops its current strategy of offering a broad fashion assortment at low prices, as well as accessories, bedding, bath and other non-clothing categories. By the end of the year, the company's 185 stores in 18 states generate sales of $804 million.
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1992: Successful introduction of 'Home Accents' departments leads to sales leap over the billion mark
Moldaw and Ferber first test the new concept of a Home Accents department featuring picture frames, china, ceramics and crystal in 20 stores. Due to its success, the offering is quickly expanded to other stores, and by 1995, 282 stores have Home Accents departments.
The company's sales surpass the billion-dollar mark for the first time, reaching $1.04 billion. -
1993: Ferber's rise
Ferber is appointed chairman of the company.
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1995: Ross strengthens competitive position and increases annual sales to $1.4 billion
Michael Balmuth, executive vice president of merchandising for Ross, succeeds Ferber as CEO. Ferber will continue to serve as chairman.
After focusing on store growth in existing markets to strengthen its competitive position, Ross returns to profitability. The chain now has 292 stores in 18 states with combined annual sales of $1.4 billion. -
2000: Ross increases sales to USD 2.7 billion
Ross continues to drive productivity and profits by consistently executing the strategy it has developed over the past several years. Year-end sales are $2.7 billion from 409 stores in 17 states and Guam.
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2003: Relocation of the headquarters
Ross Stores is moving its headquarters from Newark to Pleasanton in the Tri-Valley area.
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2004: New markets and investment in infrastructure to target lower-income customers
As a new company, dd's DISCOUNTS targets customers with comparatively lower incomes. Since approximately 2000, the Company has been developing new markets in the Southeastern and Mid-Atlantic regions of the U.S. and has made significant investments in infrastructure, including new or expanded distribution centers, new warehouse and transportation management systems, and new point-of-sale, financial, human resources and core merchandising systems.
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2010: Expansion of Ross Dress for Less and dd's DISCOUNTS pays off
At the end of the fiscal year, annual sales are $7.9 billion at 988 Ross Dress for Less stores in 27 states and Guam and 67 dd's DISCOUNTS in 6 states.
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2011: Ross expands into the Midwest
Ross enters the Midwest market with the opening of an initial 12 stores in the Chicago area. By 2017, the number of locations grows to 149 stores in the states of Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, North and South Dakota, and Wisconsin.
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2012: Growth in 33 states and expansion of subsidiary Dd's Discounts.
In its current fiscal year, Ross generates $9.7 billion in sales through 1,091 stores in 33 states. The company also operates an additional 108 Dd's Discounts stores in 8 states.
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2014: Headquarters relocation and expansion of Ross
Headquarters move again: Ross moves from Pleasanton to neighboring Dublin. That same year, Barbara Rentler succeeds Michael Balmuth as CEO, becoming the 25th female CEO of a Fortune 500 company. To continue its expansion, Ross acquires a purchasing office in New York and opens two new distribution centers in South Carolina and California.
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2017: Record sales of USD 14.1 billion
The company reports record sales of $14.1 billion. The Company currently operates 1,409 Ross Dress for Less stores in 37 states, the District of Columbia and Guam, and 213 dd's DISCOUNTS stores in 16 states.
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2018: Ross plans further growth
The number of stores increases to 1,483 in 37 U.S. states. A long-term analysis indicates a target of 2,400 Dress for less locations in the country and a further 600 stores for dd's Discount.
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2019: Summer expansion brings sales to $16.0 billion
The company is opening 28 new stores this summer. The chain now has 1,523 stores plus 249 dd's discounts in 39 states, the District of Columbia and Guam. Overall, the company is generating $16.0 billion in sales this year.
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2020: Covid 19 pandemic impacts Ross: lost sales and slowed expansion
Sales fell to USD 12.5 billion as a result of the Covid 19 pandemic, with many stores temporarily closed and consumers reluctant to spend. Expansion was correspondingly slow, with only 66 new stores opened.
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2021: Post-pandemic recovery: Ross sets new record with $18.9 billion in sales
In 2021, Ross recovers from pandemic-related sales losses to achieve record sales of $18.9 billion. The company now operates 1,628 Ross Dress for Less stores in 40 states, the District of Columbia and Guam, and 295 dd's DISCOUNTS stores in 21 states.
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2022: 40 years of Ross: 1,693 stores, 322 dd's DISCOUNTS and 101,000 employees
Celebrating its 40th anniversary, the company operates 1,693 Ross Dress for Less stores in 40 states, the District of Columbia and Guam, and 322 dd's DISCOUNTS stores in 21 states. The Company employs 101,000 associates.