Ross Stores, Inc. (ROST - Free Report) has been consistent with the execution of its store expansion plans over the years. In sync with this, the company opened 28 stores across 10 different states in June and July. These included 22 Ross and six dd’s DISCOUNTS stores. These store openings mark the completion of the company’s planned store expansion for second-quarter fiscal 2019.
Furthermore, this second round of store opening keeps the company on track to meet its target of inaugurating 100 stores in fiscal 2019 — including 75 Ross and 25 dd’s DISCOUNTS outlets. However, these numbers exclude its plans to relocate or close 10 existing stores during the fiscal year.
With this, the company now operates nearly 1,772 Ross stores and dd’s DISCOUNTS stores across 39 states, the District of Columbia and Guam. Over the long term, it expects to expand the Ross chain of stores to 2,400 locations alongside operating about 600 dd’s DISCOUNTS stores.
Ross Stores’ Strategies Bode Well
Apart from store expansion plan, the company continues to focus on merchandising organization through investments in workforce, processes and technology to keep itself on the growth trajectory. It has a proven business model as the competitive bargains it offer continue to make its stores attractive destination for customers in all economic scenarios.
Moreover, the off-price model offers strong value proposition and micro-merchandising that drive better product allocation and margins. These actions make us confident of its growth potential alongside its ability to sustain top- and bottom-line growth trends.
In fact, these actions are reflected in the company’s share price, which increased 7.5% in the past three months, outperforming the industry’s gain of 7.2%. Currently, Ross Stores carries a Zacks Rank #3 (Hold), with a VGM Score of B.
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