Ross Stores (ROST)

Ross’s business model depends on opportunistic buying, disciplined inventory management, and a low-cost store format. The company purchases closeouts, cancelled orders, excess merchandise, and seasonal inventory from a wide network of domestic and international vendors. By buying flexibly and often later in the selling cycle, Ross can offer customers a constantly changing mix of merchandise, commonly at discounts of 20% to 60% compared with traditional retail prices.

The retailer was founded in 1982 and has expanded to more than 2,100 stores across 43 states. In fiscal 2025, it generated more than $22 billion in sales, reflecting the scale of its value-oriented retail platform. Its stores are designed around a “treasure hunt” shopping experience, where assortment varies by location and visit, encouraging repeat traffic from consumers seeking recognizable brands at lower prices.

Ross competes in a retail segment that tends to benefit when shoppers become more price conscious, although it remains exposed to wage inflation, freight costs, shrink, and changing consumer demand. Its appeal rests on strong execution in sourcing, store productivity, and the ability to deliver attractive value without relying heavily on traditional promotions.