Ross Stores, the parent company of Ross Dress for Less and dd’s DISCOUNTS, is making significant strategic moves in 2025 to adapt to evolving consumer behaviors and economic challenges. Known for offering brand-name merchandise at discounted prices, Ross is expanding its physical footprint while navigating shifts in consumer spending patterns.
Ross Stores’ Strategic Expansion Amid Economic Uncertainty
In a bold move, Ross Stores plans to open 90 new locations in 2025, including approximately 80 Ross Dress for Less and 10 dd’s DISCOUNTS stores. This expansion mirrors the company’s 2024 growth, where it added 75 Ross and 14 dd’s DISCOUNTS stores, bringing its total to over 2,180 locations nationwide . This growth strategy underscores Ross’s confidence in the off-price retail model, which continues to attract budget-conscious consumers seeking value.
Navigating Shifts in Consumer Spending
Despite the expansion, Ross Stores acknowledges a “softening” in consumer demand, particularly noted in early 2025. Factors such as unseasonable weather and heightened macroeconomic and geopolitical volatility have negatively impacted customer traffic . The company anticipates comparable store sales to either decline by 3% or remain flat in the first quarter, with full-year projections ranging from a 1% decline to a 2% increase.(TheStreet)
Embracing the ‘Treasure Hunt’ Shopping Experience
Ross Stores distinguishes itself by offering a “treasure hunt” shopping experience. Customers are drawn to the thrill of discovering high-quality, branded merchandise at significantly reduced prices, often ranging from 20% to 70% off regular retail prices . This model not only attracts value-seeking shoppers but also encourages frequent visits, as inventory is constantly refreshed with new deals.
Strengths and Challenges in the Current Retail Landscape
Ross’s focus on affordability positions it well amid economic uncertainties. With many consumers cutting back on discretionary spending, the company’s value-oriented approach appeals to a broad customer base . However, the lack of an e-commerce platform presents challenges, especially as more consumers shift towards online shopping. While the physical-only model has insulated Ross from direct competition with e-commerce giants, it may limit reach to certain customer segments in the long term .
Looking Ahead: Adaptation and Resilience
As Ross Stores continues its expansion, the company remains cautious, closely monitoring economic indicators and consumer behavior. By leveraging its strengths in offering value and maintaining a unique in-store experience, Ross aims to navigate the evolving retail landscape successfully. The company’s adaptability and focus on customer needs will be crucial in sustaining growth and competitiveness in the years ahead.