Ross has been having a stellar start to the year. Its stock is up roughly 18% since January.
It’s part of a larger trend of discount stores, which find themselves benefiting as Americans tighten their spending amid rising inflation and global conflict.
“I think the share shift is more from mainstream retail, department stores and other places like that, to off-price in general, and we would just like to get our fair share or, of course, more than our fair share from that shift,” Ross CEO James Conroy told analysts during an earnings call on March 3.
Department stores have seen a decline in sales, prompting many to shut stores or go bankrupt. Macy’s is planning to close 150 stores in the next two years, according to Fast Company. Meanwhile, Sak’s Fifth Avenue filed for bankruptcy, TheStreet’s Kirk O’Neil reports.
And Ross is taking advantage of the change in shoppers’ store preferences, as the dip in department means more discounted products.
Shoppers are loving discount sellers like Ross
Ross makes money by buying discounted items for pennies and reselling them at steep discounts. It’s a model that seems to be working.
In the fourth quarter of 2025, its sales rose 12% to $6.6 billion, while sales rose 8% to $22.8 billion for the full year.
The store’s footprint has also expanded, according to data from Placer.AI. More shoppers visited Ross locations, with growth ranging from 11.5% to 7.5% between October 2025 and January 2026.
Timeline of Ross store expansion
- 1982–1985: Ross opens in six converted department stores in the Bay Area. The company quickly expands to over 121 stores in 16 states, according to Ross.
- 1995: Ross’s store count grows to 292 locations in 18 states.
- 2000–2010: Ross accelerates its store expansion. It launches dd’s DISCOUNTS in 2004 to reach more shoppers. By the end of 2010, there are 988 Ross stores in 27 states and Guam, and 67 dd’s in six states.
- 2011: Ross expands into the Midwest with a group of 12 stores in the Chicago area, later expanding in the region.
- 2023: Ross opens its first stores in New York, Michigan, and Minnesota.
- 2025: Ross operates 2,273 stores after opening 90 new locations in 2025.
Plans for more Ross expansion
Volume is important for retailers like Ross that sell their items at a low price. To make a profit, they need to sell a lot.
Ross is betting that expanding their brick-and-mortar footprint can help them scale up their sales volumes.
Shutterstock
They’ve already opened 90 stores in 2025, according to Retail Dive. The retailer was able to do so by acquiring several bankrupt Rite Aid locations, mostly in the West Coast.
“Following strong new store performance in 2025, these openings build on that momentum,” Executive Vice President, Property Development at Ross, Richard Lietz said in a statement.
Now, Ross plans to open 110 new stores in 2026, increasing its store count by 5%, the company announced.
It’s already opened 17 news stores in February and March. That includes 13 Ross Dress for Less Stores and four dd’s Discounts.
The new Ross locations include new spots in the Mountain, Midwest, Northeast, and Sunbelt areas. Meanwhile, the company opened its first dd’s Discounts in Utah and expanded its presence in California and Texas.
“Looking forward, we remain confident in our long-term growth potential and see a clear path to 2,900 Ross locations and 700 dd’s DISCOUNTS stores across the country,” said Leitz.
Inflation and competition pressures
But shoppers could soon find that Ross costs more than they bargained for, as the CEO announced he was open to the idea of increasing prices, TheStreet’s Patricia Battle reported.
Meanwhile, pressures from tariffs have already been felt by the retailer. CEO Conroy noted in fourth-quarter earnings results that the first half of 2025 presented several challenges from tariffs and consumer uncertainty.
More Retail
- Home Depot CEO raises alarm bells on consumer problem in stores
- Kroger quietly reduces a vital store service for customers
- Kohl’s makes bold store change to lure back customers
Oil prices could also have an indirect impact, as the conflict in Iran increases the price of gas for shipping items and Americans tighten their already strained budgets. The longer the conflict continues, the bigger the fallout to consumers, The New York Times reported.
Ross also faces competition with other discount retailers. TJ Maxx is planning to increase its store count in the next year, both in the U.S. and globally, the company told analysts in an earnings call.
But for now, shoppers will have plenty of options for great bargains.
Related: National cosmetics retailer closes three-quarters of its stores
