Ross Stores expands with 90 new locations as retail rivals close stores

Ross Stores Inc. announced plans to expand its presence at a time when much of the retail industry is contracting in an effort to remain profitable.

The California-based bargain retail chain recently opened thirty-six Ross Dress for Less locations and four dd’s Discounts stores in 17 states during September and October, completing the company’s fiscal 2025 store growth plans.

The company has no plans to pause its expansion plans with plans to open 90 new locations throughout the rest of the year.

“This fall, we continue to strengthen our brand presence by opening stores in existing markets and expanding into new markets,” said Richard Lietz, executive vice president of real estate development.

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For Ross Dress for Less locations, the company is adding locations in the Midwest and Northeast. It is adding new stores in Michigan, New Jersey and New York and simultaneously increasing its presence in Sun Belt states, Lietz said.

A shopper carries bags outside a Ross store in Miami, Florida, U.S., on Friday, May 17, 2024. (Eva Marie Uzcátegui/Bloomberg via Getty Images/Getty Images)

Meanwhile, it is expanding dd’s in the core markets of California and Texas, Lietz added.

“Looking ahead, we remain confident in our expansion plans and see many opportunities to grow to at least 2,900 Ross Dress for Less locations and 700 dd’s DISCOUNTS over time.”

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The company stands out as an outlier amid a wave of large retail giants that have been trimming their footprint to ensure their long-term viability.

A Ross store in San Francisco, California, USA, on Sunday, November 12, 2023. (Michaela Vatcheva/Bloomberg via Getty Images/Getty Images)

Macy’s announced plans in 2024 to close 150 low-producing locations by 2026 to try to boost profitability while facing cost pressures, including tariffs. Macy’s executives said on its earnings conference call last month that it had to pay steep tariffs, as much as 145%, on certain imported items.

Meanwhile, Kohls’s closed 27 underperforming stores in April 2025 and its e-commerce fulfillment center in San Bernardino, California, the following month.

Pharmacies and supermarket chains have also not been spared from the uncertain macroeconomic environment, with household names such as Walgreens and Kroger announcing plans to reduce their footprint.

John Mercer, head of global research at Coresight Research, told FOX Business that off-price has been a growing segment for several years, “as store expansion has met consumer demand for discount alternatives to mid-range stores.”

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Mercer noted that Ross is among off-price stores like TJ Maxx and Burlington that “have been structural market share winners with a strong value proposition that appeals to a mix of low-income shoppers and those selling from mid-tier retailers.”

A Ross store in Miami, Florida, USA, on Friday, May 17, 2024. (Eva Marie Uzcátegui/Bloomberg via Getty Images/Getty Images)

Additionally, Mercer said such companies can be considered countercyclical retailers because buyers trade more in times of economic pressure.

Data from Coresight Research shows that six of the 10 retail chains that will open the most stores in 2025 are discount formats. For example, we expect the three major discount retailers, TJX, Ross Stores and Burlington, to open a combined total of 289 stores this calendar year. This follows an estimated 340 vacancies at these three companies in calendar 2024.

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“Discounters are part of an expanding overall discount segment that includes dollar stores, grocery discounters (such as Aldl, Grocery Outlet and Lidl), other specialty discounters (such as Primark) and discount stores such as Ollie’s Bargain Outlet,” Mercer said.

CFRA analyst Zach Warring told FOX Business that the discount space, particularly Ross Stores and TJX, are taking market share from department stores and even some big-box retailers.

“The main reasons Ross Stores and TJX are able to continue opening new locations while others are not is due to the great business model and continued push for discount pricing.

Their business model, in which they buy old or surplus inventory from other retailers for pennies on the dollar and sell it at a 30% to 70% discount to retail, also allows them to open new locations with little or no outside capital, Warring said.

To date, there are 2,273 Ross Dress for Less and dd’s DISCOUNTS stores operating in 44 states, the District of Columbia, Guam and Puerto Rico.