Unlike some of its competitors in the retail landscape, Ross Stores is benefiting from a growing consumer trend. Off-price retailers are seeing high demand in stores, as economic uncertainty strains the wallets of consumers across the country. To capitalize on the consumer boom, the company’s CEO is weighing a risky change in the store that customers may not be too happy about.
At the end of last year, Ross, which also runs DD Discount, saw its comparable-store sales rise 9% year-over-year, while its operating income also increased nearly 11%, according to its fourth-quarter earnings report for 2025.
Additionally, recent Placer.ai data found that foot traffic at Ross locations increased nearly 12% year-over-year during the fourth quarter. That growth outpaced competitors TJMaxx, Marshall’s, and Burlington, which saw total visits grow by 2.8%, 3.3%, and 9.4%, respectively.
Off-price retailers resonated more with consumers than department store chains like Macy’s, Kohl’s, and JCPenney, which all suffered foot traffic declines during the quarter.
“Prior to Covid, department stores had a bit of a share, capturing only half of the visits to the two segments,” Leila Margalit, content manager at Placer.ai, wrote in an analysis. “But by 2025, this relationship had completely reversed, with price claiming a significant 62.9% share of visits.”
She added: “As consumers grow more price sensitive and the retail landscape becomes more dualised, traditional department stores have struggled to demonstrate a clear competitive edge – while pricing benefits from a direct, discovery-driven model.”
While speaking to investors during the company’s earnings call on March 3, Ross CEO Jim Conroy said fourth-quarter sales and earnings “significantly” exceeded the company’s expectations.
“Every major business category showed strong positive sales growth with footwear and cosmetics performing best,” Conroy said.
Ross in particular saw its women’s business pick up during the quarter, especially in the junior section.
“We’re very comfortable to say that we’ve seen growth, based very broadly across income demographics and age demographics, including 18- to 34-year-old consumers,” Conroy said.
Ross’ comparable store sales increased 9% year-over-year in the last few months of 2025. ·Shutterstock
It’s no wonder that young US shoppers are flocking to Ross stores. A PWC survey a few months ago found that young consumers are increasingly value and price conscious.
About 79% of Gen Z shoppers wait for products to go on sale before making a purchase, while 21% regularly pay full price. Also, searches for discount codes are up 14%.
The increase in consumer demand at Ross follows last year’s price hikes in stores due to tariffs. Conroy said price increases during the fourth quarter were “very modest,” with the company’s home category “hit hardest by the tariffs.”
He also said that during the quarter, Ross had “gained some confidence” in introducing higher prices in stores.
“I think if there was a lesson we learned from the quarter, it’s that we’re probably going to be able to push for higher-priced items or potentially buy some retail,” Conroy said.
Related: Kohl’s makes bold store changes to attract shoppers
Conroy acknowledged that “having the best deals in retail” has made the company successful and reaffirmed the company’s core focus on maintaining its reputation. However, Ross is not afraid to buy more clothes from customers.
“If we feel like we have a category of merchandise that is losing margin, we increase the AUR (average selling price of an item) a little bit to recoup some of that,” Conroy said.
That potential shift could be dangerous for Ross because many consumers across the country are feeling the pinch amid economic pressures, which have forced them to cut back on spending, an October survey by LEK Consulting found.
regarding to 57% US consumers believe they are Paying more than acceptable For clothing, shoes, and accessories, and 50% Feel this about beauty products.
Just about Part Four U.S. consumers expect their financial status and discretionary spending ability to improve Over the next 12 months.
in addition to, 74% Plan to cut costs on clothing, footwear and accessories; 68% Major household items; and 63% About beauty products.
a hard 83% He would say Buy at a low price household brands or products; 60% Buy clothing, shoes, and accessories brands or products at low prices. Source: LEK Consulting Survey
“The survey identified the clothing category as the most sensitive for consumers when it comes to price increases from tariffs,” Laura Brookhiser, managing director of LEK Consulting, said in a statement.
Rob Haslehurst, who is also managing director of LEK Consulting, added in a separate statement that companies should refrain from raising prices to match the market.
“More effective brands and retailers will try to adjust prices to reflect the benefits that customers actually feel — rather than simply adding a cost markup or matching the market, which is the practice in some companies,” Hasselvorst said.
“They will work hard to fully understand the essential attributes that define the brand’s value proposition so they can make sure the price is right,” he continued.
While Ross is weighing the potential price hike, it is planning additional bold changes to boost demand.
The company has recently been testing self-checkout in its stores, a change it plans to introduce to other locations this year.
“We’ve actually been rolling out self-checkout for a while now, and we plan to expand to other stores depending on the positive results,” Ross’ chief operating officer Michael Hartshorn said during the company’s earnings call.
Last year, Ross opened 80 new Ross Clothing and 10 DD discount stores for less stores, while expanding into new markets such as the New York metro area and Puerto Rico. This year, the company plans to accelerate its store openings, targeting some of the “more populated, higher rent markets.”
Other Retail:
“We plan to open 110 new locations this year, representing 5% growth. Part of that growth reflects the re-acceleration of DD Discounts with plans to open 25 stores in 2026,” Conroy said. “For Ross, we see an opportunity to open 85 new stores this year, up slightly from last year.”
“As we continue to identify attractive real estate opportunities in our markets, we are confident in the long-term potential to grow the Ross and DD chains to 2,900 and 700 stores, respectively, expanding our reach to even more customers over time.” He added.
As Ross plans to implement these changes, it expects same-store sales growth of 3% to 4% for fiscal 2026.
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This story was originally published by The Street on March 10, 2026, where it first appeared in the Retail section. Add TheStreet as a Favorite Source by clicking here.
