Ross Stores Swot Analysis

Company History
Ross is an American off the price retailer with more than 1412 stores in more than 37 states in the United States. Founded 36 years ago by Bill Isackson, the California based company has become one of the most significant players in US retail industry (Peterson, 2017). The origin of Ross Stores can be traced back to 1982 when the founder acquired six junior department stores in the San Francisco Bay Area and converted them to the Ross Dress for Less off-the-price format. In 1985, Ross stores became publicly traded using the symbol ROST. By 1986, Ross Stores had opened a total of 121 stores in 16 states. Between 1987 and 1989, the company opened 35 new net stores and reincorporated in Delaware in 1989. In the early 1980’s, the

Massive sales significantly reduce the cost of operations boosting the profitability of the organization. Ross’s business model gives it a considerable edge in the cut-throat retail industry, and it cushions the company from losing its customers to Amazon. The low prices appeal to the consumers even in the face of tough economic times giving Ross Stores an edge over other players in the industry (Trainer, 2017). For instance, Ross Stores has maintained a Return on Invested Capital (ROIC) of 21 % which is way beyond the firm’ s cost of capital (7.44%) meaning Ross Stores has sufficient funds to roll out expansion strategies (Trainer, 2017). The low prices are not a source of long term competitiveness since the high profit margins in the off-price retail industry are likely to attract more firms thus diminishing low prices as a source of competitive edge. For this reason, Ross Stores should explore other ways to give a unique value proposition to the

The strategy will aim to empower staff members so that they can always go out of their way to improve customer experience Ross Stores will give the staff members the authority to resolve the customers complain and even provide a refund if it is necessary. In a snapshot, the new competitive strategy will be a blend of cost leadership, price leadership, effective digital communication strategy and employee