Ross stores acquire their merchandise through a diverse set of channels, primarily focusing on purchasing goods at reduced prices to pass savings on to their customers.
Key Inventory Sources for Ross
Ross's business model relies on strategic sourcing to stock its shelves with a constantly changing assortment of brand-name and designer apparel, accessories, footwear, and home goods. Their inventory comes from several distinct avenues:
- Sales from Manufacturers: Ross often purchases excess inventory directly from manufacturers. This can include products that were overproduced, end-of-season items, or goods that other retailers chose not to buy in full.
- Overstock Inventories of Other Retailers: A significant portion of Ross's stock consists of clearance or overstock items from other mainstream retailers. When larger department stores or boutiques have unsold merchandise, Ross can step in to buy these goods in bulk at a discounted rate.
- Products Made Specifically for Off-Price Retailers: Beyond just acquiring surplus, some manufacturers produce goods specifically for off-price retailers like Ross. These items are designed to meet a certain price point and are part of a deliberate strategy to supply the discount retail market.
By leveraging these various sources, Ross can offer popular brands and quality products at prices significantly lower than traditional retail stores.
Similar Sourcing Strategies in Off-Price Retail
The sourcing methods employed by Ross are common within the off-price retail sector. Other well-known discount stores, such as HomeGoods, TJ Maxx, and Marshalls, utilize similar strategies to procure their vast and varied inventories. This approach allows them to consistently refresh their product offerings and provide customers with a treasure-hunt shopping experience.
