The retail apocalypse has largely bypassed the discount retail segment, and Ross Stores (NASDAQ:ROST) intends to capitalize on the opportunity by going on a building spree. The company plans to add about 100 new stores in 2020.
The retailer says it plans to open 75 namesake locations this year along with 25 more dd's Discounts locations. Ross currently has 1,565 Ross Dress for Less stores and 266 dd's locations in operation.
An online presence isn't necessary
Discounters like Ross and Burlington Stores (NYSE:BURL) have an intensely focused outlook on their brick-and-mortar locations. While Ross has forgone the need for an e-commerce platform at all -- its website simply directs consumers to their local Ross location -- Burlington just announced it was eliminating its digital presence, saying it took resources away that could be better used in its stores.
Gregg McGillis, Ross Stores executive vice president of property development, said in a statement, "As we look out over the long-term, we remain confident that Ross can grow to 2,400 locations and dd's Discounts can become a chain of 600 stores given consumers' ongoing focus on value."
In its recently reported fourth-quarter earnings report, Ross said net sales grew 7.5% to $4.4 billion as comparable store sales rose 4% on top of a 4% gain last year. Profits were up 7% to $1.28 per share.
It ended 2019 with 1,808 stores, 88 more than at the end of 2018, and it has opened 19 new Ross stores so far this year along with seven dd's stores, which are part of the 100 new locations planned.