Ross Stores Announces Modest Price Increases Amid Strong Sales Growth
Ross Stores, which also operates dd's Discounts, is planning to implement modest in-store price increases later this year. This decision follows a strong second quarter performance marked by a 10% increase in comparable store sales and operating profits of $1.1 billion—up nearly 73% from the previous year. Foot traffic at Ross Dress for Less locations rose by 16.4%, while dd's Discounts saw an 8.4% rise, according to Placer.ai data. CEO Jim Conroy stated during a recent earnings call that these price increases will be in line with current trends—low single-digit percentage changes—and are intended to reflect the company’s confidence and competitive positioning amid inflationary pressures on consumers' budgets. Ross also received $253 million in tariff refunds but has decided not to use them for lowering prices, unlike some competitors such as Walmart and Target. The move marks a shift from earlier hesitancy around raising average unit retail (AUR) due to tariffs last year. Conroy emphasized the company’s focus on maintaining value while navigating inflationary conditions.
Topics: AUR consumer demand price increases Ross Stores