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Ross: As Others Retrench, Discount Chains Grow

Ross: As Others Retrench, Discount Chains Grow

This article offers a handful of nuggets that break down why discounters like Ross are finding success against online shopping.  

  • Ross‘s average item price is only $10
  • 98% of Ross’s goods are under $30
  • Online retail has trouble offering these prices for top brands and still making money
  • Ross and others buy excess inventory from top brands
  • Ross ships the inventory to stores or keeps it in warehouses to rotate through stores
  • Discounters appeal both to people who “need a bargain” & those who “want a bargain”
  • Both types of discount shoppers enjoy the “treasure-hunt” experience
  • Online retail has had a rough time replicating that experience

Discounters, also known as off-price sellers, keep expanding their physical footprints, even as Americans shop more online and most brick-and-mortar retailers pour cash into their digital operations. During an era of disruption, these companies have proved resilient and durable against competition from Amazon. For more on this trend, please see the CNN article.

CNN Business: Why Amazon can’t touch Ross and TJ Maxx