Mainstream Retailers Beware: Ross Stores is Snatching Your Customers!
The off-price retail giant Ross Stores is making waves in the industry, and it’s not just about bargain hunters anymore. In a bold move, Ross has been steadily poaching customers from mainstream retailers, and their latest earnings report proves it. But here’s where it gets controversial: Is this a sustainable strategy, or are they simply capitalizing on a temporary shift in consumer behavior? Let’s dive in.
Ross Stores (https://investors.rossstores.com/investor-overview) reported a staggering 9% growth in comparable store sales for the quarter ending January 31, building on a 3% increase from the same period last year. Their total sales surged by 12%, according to their March 3 earnings release (https://investors.rossstores.com/news-releases/news-release-details/ross-stores-reports-fourth-quarter-earnings-well-above-guidance). CEO Jim Conroy (https://investors.rossstores.com/board-member/james-g-conroy) didn’t hold back during the earnings call (https://www.fool.com/earnings/call-transcripts/2026/03/03/ross-stores-rost-q4-2025-earnings-transcript/), attributing much of this success to winning over shoppers traditionally loyal to mainstream brands. And this is the part most people miss: Conroy clarified that this market share gain didn’t come at the expense of other off-price retailers, who also had a strong quarter, but rather from department stores and similar mainstream players.
Conroy’s strategy is clear: “We’re not just aiming for our fair share of this shift—we want more than that.” Ross Stores operates two key chains: Ross Dress for Less (https://www.rossstores.com/), known for its off-price apparel and home fashions, and dd’s DISCOUNTS (https://www.ddsdiscounts.com/), which offers moderately priced goods across categories. Both brands saw growth across all merchandise categories and regions during the fourth quarter, a testament to their broad appeal.
But here’s the million-dollar question: Can Ross sustain this momentum? Conroy credits new marketing campaigns launched during the back-to-school season, in-store improvements, and a stellar product assortment for their recent success. “When you combine these elements with strategic marketing spend, it’s a recipe for success,” he explained. For instance, their Q3 and Q4 performance was significantly boosted by these initiatives.
Looking ahead, Ross Stores is optimistic, projecting a 7-8% increase in comparable store sales for the current quarter and a 3-4% rise for the full year. CFO William Sheehan (https://investors.rossstores.com/management/william-sheehan) expressed confidence in their continued strength as the spring season kicks off. This optimism is backed by plans to expand their store count in 2026, following the addition of 90 new stores in 2025 (with only 9 closures), bringing their total to 2,267. In 2026, they aim to open 110 new stores, a 5% growth, with a long-term goal of reaching 3,600 stores.
But here’s where it gets even more interesting: Ross isn’t alone in this expansion race. Rival off-price retailer The TJX Companies (https://www.tjx.com/) is also ramping up its brick-and-mortar presence, planning to add 146 net new stores by January 2027, a 3% increase. This raises the question: Is the off-price market becoming oversaturated, or is there still room for growth? And more importantly, can Ross maintain its edge over both mainstream and off-price competitors?
As Ross Stores continues to challenge the status quo, one thing is clear: the retail landscape is shifting, and off-price models are leading the charge. What do you think? Is Ross’s strategy a game-changer, or is it too good to last? Share your thoughts in the comments—we’d love to hear your take on this retail revolution!
