The off-price retailer continues
to outperform expectations.
Source Forbes Magazine
Apr. 8, 2011

THE SITUATION: 1991
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Ross was a regional off-price retailer with approximately $900 million in annual revenue.

THE PROBLEM
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Ross had an image problem. It was perceived as a store with low quality, unfashionable merchandise, And even though consumers viewed Ross as having low prices, its appeal was narrow and downscale.

Naturally, Ross wanted to broaden its appeal by making it clear that they actually had very current, fashionable and high quality merchandise—in fact, the same clothing found at leading department and specialty stores.

After successfully attacking its image problem, Ross began to expand into the Home Décor category. This necessitated a new campaign that positioned Ross as the place to buy a wide variety of home products including bed and bath, kitchen utensils, tableware and a myriad of home décor items. This campaign demonstrated to the public that the merchandise in Ross’s home departments was identical to that carried by fine department stores but at much lower prices.

By 2001, Ross had begun an expansion program that stretched from coast to coast, opening stores in over 70 new markets.

THE SOLUTION
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The first campaign stated “The only difference is the price” and demonstrated that Ross had the same fashions as the leading department stores at a fraction of the price!
Later the scope of the campaign was expanded to the home category. Once again, it was shown that Ross had exactly the same products as the leading department and specialty stores at incredible savings. A strong emphasis was placed on identifying the specific categories of merchandise that Ross carried.

Today the same story with the theme “The savings are unbeatable” continues to see Ross strengthen their position throughout the country.

THE RESULTS
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Ross has grown to become the second largest chain in the off-price retail category and one of the fastest growing. Revenues have increased more than 700% since Admarketing became the agency for Ross and home décor has become one of Ross’s most important categories.

In 2008, Ross’s success was clearly acknowledged by the stock market as it was the 4th largest gainer on NASDAQ. Despite difficult economic times, Ross continues to show solid same store and overall growth during 2009.