Business Analysis of Ross Stores

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Ross Stores

ROSS STORES

Business Overview

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. It primarily offers apparel, accessories, footwear, and home fashions. The company's Ross Dress for Less stores sell its products at savings of 20% to 60% off department and specialty store regular prices primarily to middle income households; and dd's DISCOUNTS stores sell its products at savings of 20% to 70% off moderate department and discount store regular prices to customers from households with moderate income. As of July 17, 2017, it operated 1,384 Ross Dress for Less stores in 37 states, the District of Columbia, and Guam; and 205 dd's DISCOUNTS stores in 16 states. The company was founded in 1982 and is headquartered in Dublin, California.

Ross Stores

Ross Stores


R&P Rank: 237
Sector: Retail
Industry:Apparel Retail
H.Q Location:California
Website: www.rossstores.com
Company Address:
5130 HACIENDA DRIVE, DUBLIN CA 94568
Ph:925-965-4400

Business Analysis of Ross Stores

The Retail Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Ross Stores compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Ross Stores to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Ross Stores with an interactive chart.

  1. Revenue Growth: Ross Stores reported a revenue growth of 8.1% year-on-year during 2016. Apparel Retail Industry grew at 5.0% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Ross Stores spent 71.8% of its total revenues on COGS. Apparel Retail industry average (COGS share of revenue) in the same period was 62.3%
  3. R&D share of Revenues: Ross Stores R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Ross Stores spent 14.6% of its total revenues on Sales, Marketing, and General Administration (SG&A). Apparel Retail industry average SG&A spending in the same period was 27.0%
  5. Inventory share of Revenues: As a percentage of revenue, Ross Stores spent 11.9% of its total revenues on Inventories. Apparel Retail industry average Inventory spending in the same period was 14.4%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Ross Stores invested 7.9% of its total revenues on Accounts Payable (A/P) Apparel Retail industry average Accounts Payable investment in the same period was 7.0%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Ross Stores invested 0.6% of its total revenues on Accounts Receivable (A/R). Apparel Retail industry average Accounts Receivable investment in the same period was 1.5%
  8. PP&E share of Revenues: As a percentage of revenue, Ross Stores invested 19.6% of its total revenues on Property, Plants, and Equipments (PP&E). Apparel Retail industry average PPE investment in the same period was 17.6%
  9. Intangibles share of Revenues: Ross Stores Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: Ross Stores Net Margins in the year 2016 were 8.5%. Apparel Retail industry average Net Margins in the same period were 5.2%

Sector and Industry Association of Ross Stores

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Ross Stores is associated with Retail Sector and Apparel Retail Industry.

Retail sector is comprised of the following industries: Broadline Retail; Grocery Retail; Specialty Retail; Apparel Retail; Home Improvement Retail; Specialized Consumer Services. The definitions for each of the industries is as follows:

  • Broadline Retail industry includes retail outlets and wholesalers offering a wide variety of products including both hard goods and soft goods.
  • Grocery Retail industry includes retail stores that primarily offer non-perishable food that is packaged in cans, bottles and boxes, with some also having fresh produce, butchers, delis, and bakeries
  • Specialty Retail industry includes retailers and wholesalers concentrating on a Single Class of Goods, such as electronics, books, automotive parts or closeouts. It also includes automobile dealerships, video rental stores, dollar stores, duty-free shops and automotive fuel stations not owned by oil companies.
  • Apparel Retail industry consists of retailers and wholesalers specializing mainly in Clothing, Shoes, Jewelry, Sunglasses and Other accessories.
  • Home Improvement Retail industry includes retailers and wholesalers concentrating on the sale of home improvement products, including Garden Equipment, Carpets, Wallpaper, Paint, Home Furniture, Blinds and Curtains, and Building materials.
  • Specialized Consumer Services industry includes providers of consumer services such as Auction Houses, Day-care Centers, Dry Cleaners, Schools, Consumer Rental Companies, Veterinary Clinics, Hair Salons and providers of Funeral, Lawn-maintenance, Consumer-storage, Heating and Cooling installation and Plumbing services.

Industry Ranking of Ross Stores

With $11.9 billion revenues, Ross Stores ranked number 5 of all the companies in the US Apparel Retail industry. There were a total of 36 public companies in the US Apparel Retail industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Apparel Retail industry by revenues during 2016 were:

  1. TJX Companies ($30.9 billion)
  2. Gap ($15.8 billion)
  3. Nordstrom ($14.4 billion)
  4. L Brands ($12.2 billion)
  5. Ross Stores ($11.9 billion)
  6. Ascena Retail Group ($7 billion)
  7. Michaels Companies ($4.9 billion)
  8. Tiffany ($4.1 billion)
  9. American Eagle Outfitters ($3.5 billion)
  10. Abercrombie & Fitch ($3.5 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Ross Storesand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of ross-stores

Gap (GPS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Gap Inc with $16 billion revenues in the year 2016 was the number 2 Apparel Retail company. Read this report to know the top competitors of Gap and identify growth and cost optimization opportunities of Gap

Nordstrom (JWN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Nordstrom Inc with $14 billion revenues in the year 2016 was the number 3 Apparel Retail company. Read this report to know the top competitors of Nordstrom and identify growth and cost optimization opportunities of Nordstrom

L Brands (LB) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

L Brands, Inc. with $12 billion revenues in the year 2016 was the number 4 Apparel Retail company. Read this report to know the top competitors of L Brands and identify growth and cost optimization opportunities of L Brands

Ascena Retail Group (ASNA) Business Analysis – Analyze Historical Performance, Strategic...

Ascena Retail Group, Inc. with $7 billion revenues in the year 2016 was the number 6 Apparel Retail company. Read this report to know the top competitors of Ascena Retail Group and identify growth and cost optimization opportunities of Ascena Retail Group

Michaels Companies (MIK) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Michaels Companies, Inc. with $5 billion revenues in the year 2016 was the number 7 Apparel Retail company. Read this report to know the top competitors of Michaels Companies and identify growth and cost optimization opportunities of Michaels Companies

Tiffany (TIF) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Tiffany & Co with $4 billion revenues in the year 2016 was the number 8 Apparel Retail company. Read this report to know the top competitors of Tiffany and identify growth and cost optimization opportunities of Tiffany

Revenues Analysis

Ross Stores (ROST) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Ross Stores Inc (ROST) from 2012 to 2016. Ross Stores generated a total of $11.9 billion revenues during 2016. Ross Stores reported a revenue growth of 8.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in January.

Ross Stores (ROST) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Ross Stores Inc (ROST) from 2002 to 2016. Ross Stores generated a total of $11.9 billion revenues during 2016. Ross Stores reported a revenue growth of 8.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in January.

Ross Stores (ROST) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Ross Stores Inc (ROST) revenue growth with Apparel Retail industry growth during the last five years from 2012 to 2016. Ross Stores reported a revenue growth of 8.1% year-over-year during 2016. The Apparel Retail industry growth was 5% year-over-year during 2016. Ross Stores growth was faster than the industry during 2016.

Profit Analysis

Ross Stores (ROST) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Ross Stores Inc (ROST) from 2012 to 2016. Ross Stores reported a total net income of $1 billion during 2016. Ross Stores generated a total of $11.9 billion revenues during 2016. Ross Stores net prof