Ross Posts Sales Jump as Shoppers Head to Off-Price Retailers
Off-price retailer Ross Stores saw “robust” sales growth in the quarter ended Aug. 1 as both existing customers and new ones sought prices lower than those of mainstream retailers, CEO Jim Conroy said during a Thursday (Aug. 20) earnings call.
“We really want to be there for a customer that is battling higher gas prices and all the other inflation pressures that they have in their life,” Conroy said.
During the most recent quarter, Ross Stores saw year-over-year gains of 13% in total sales and 10% in comparable sales, primarily driven by customer traffic, according to a Thursday press release.
The company operates the off-price apparel and home fashion chain Ross Dress for Less and the more moderately priced apparel, accessories, footwear and home fashions chain dd’s DISCOUNTS, per the release.
The Ross Stores brands saw more new and lapsed customers as well as more frequent trips and higher spending from existing customers during the quarter, Conroy said.
The new customers span a broad range of demographics in terms of both income and age, Conroy said.
“Once in our stores, both new and existing customers are responding to our compelling values and a broader selection of fashion and brands,” Conroy said.
PYMNTS reported Monday (Aug. 17) that with some of America’s biggest retailers about to release their quarterly results, Ross Stores could have the strongest results because consumer caution can send more shoppers into off-price stores.
During Thursday’s earnings call, an analyst asked how Ross Stores will maintain its competitive pricing when a number of national chains are lowering prices, in some cases with the help of tariff refunds. Conroy said Ross Stores always wants its pricing to be below that of mainstream retail.
“We’ve tried to maintain a little bit more stability, and in today’s environment, today’s inflationary economy, we absolutely want to have the best values in our store,” Conroy said. “If we were to see something where we didn’t have that price umbrella under mainstream retail, we would make a change. But I think we are still safe where we are now.”
Asked about Ross Stores’ mix of good, better, best and how it might change, Conroy said the good price point is the company’s bread and butter and that it remains focused on that.
“We recognize that the environment that we’re in right now, a lot of retailers are under pressure, a lot of discount retailers are under pressure, and it would sort of be a foolhardy strategy to take this moment in time to elevate the assortment and bring our price points up in a meaningful way,” Conroy said.
