Ross Stores Expands Store Footprint with 18 New Outlets Across NY, CA, FL & TX

Ross Stores has commenced its expansion efforts for 2024, opening 11 Ross Dress for Less and seven DD’s Discounts stores across 11 states between February and March. This initiative aligns with the company's goal to add approximately 90 new stores during fiscal 2024, with around 75 Ross and 15 DD’s Discounts locations.

Geographical Expansion

The expansion includes new locations in states such as Michigan and New York for Ross, and focused growth in existing markets like California, Florida, and Texas for DD’s Discounts. Gregg McGillis, the group executive VP of property development, highlights the company's total store count of 2,127 across 43 states, the District of Columbia, and Guam. He expresses confidence in Ross reaching 2,900 locations and DD’s Discounts becoming a chain of 700 stores in the long term, given consumers' emphasis on value and convenience.

Financial Performance and Projections

Ross Stores is expanding its store presence amid positive fiscal performance. In the quarter ended Feb. 3, the retailer reported increased income and sales compared to the previous year, surpassing analyst expectations. Sales reached $6 billion, with a 7% increase in comparable-store sales. The company anticipates same-store sales growth of 2% to 3% for 2024, building upon a 5% gain in 2023. Earnings per share are projected to range from $5.64 to $5.89.

Challenges and Strategies

While celebrating the overall success, CEO Barbara Rentler acknowledged disappointment with DD’s Discounts' performance in newer markets during the previous fiscal year. The company is conducting an analysis to understand the needs of DD’s diverse customer base as it expands into new territories.

Company Overview

Headquartered in Dublin, California, Ross operates 1,764 namesake locations in addition to 345 DD’s Discounts stores across various states and territories.