Inquiry Project: Ross Store SWOT, PESTLE, and Pandemic Analysis

This inquiry-based project analyzes the American fashion retailer Ross Store, examining its business operations, market position, and the challenges it faces. The project includes a SWOT and PESTLE analysis to evaluate the company's internal and external environments. It incorporates primary research through a questionnaire to gauge customer satisfaction and secondary research to assess financial performance and the impact of the COVID-19 pandemic. The study explores the challenges Ross Store faced during the pandemic, including store closures and sales declines, and its strategies for recovery. The conclusion offers insights into the company's future growth potential, considering market competition, online retail presence, and management's outlook, ultimately providing a comprehensive overview of Ross Store's current standing and prospects in the retail industry.

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Inquiry Based Learning
Anna Ross
BNU 22028361
Tutor: Dr Nisar Aziz
-The challenges of Ross Store-

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In this Inquiry Project about fashion retailer where I would like to present Ross Store
SWOT, PESTLE, primary and secondary research with explanation. Also I would like
to show you how pandemic of COVID-19
Ross Store is an American fashion retailer with headquarters in Dublin, California. Is
one of the biggest low-price retailers in the United State of America. Ross Store
CEO (Chief Executive officer) is Barbara Rentler, Executive Chairman K. Gunner
Bjorklund.
Ross Store is a retailer with clothing, footwear, bedding, furniture, jewellery, beauty
products, toys, and house wear.
Ross oversees 1483 stores in 37 United State states and they employee over 88,100
employees according to 2019 statistics. Ross Store was first opened in 1950 in San
Bruno, California by Morris Ross.
Ross Store strength is overlooking over 55,000 employees, they are specifying in
clothing, footwear, toys, furniture, bedding, jewellery, beauty products and house
wear. Also, they are offering personal customized Gift Cards and deep discount for
clothes and furniture’s. But where is a strength there must be a weakness. One of
them is Covid-19 pandemic which may impact credit rating if additional debt will be
taken. Lack of full national coverage across the Unites State. Intense competition
which means there is limited market share and low brand loyalty.
With strength and weakness there is opportunities where Ross Store use by putting
up the latest fashion for auction, online retailer which is an easy way to increase
sales of items produced in bulk.
Ross Stores threats like Zara can change the product on display as fast as Ross,
other supermarkets also have garments for sale, fake products of major brands
attract young customers.
In political way Ross Store face changes to a taxes and trades Policies, risk of
military invasion, mandatory employee benefits, legal frame of contract enforcement
and impact of Unites States Chin trade war on sources.
Economical impact of changing disposable income of consumers due to economic
slowdown, unemployment, economic growth, exchange rate and stability of host
country currency, labour cost and productivity in the economy.
Socially Ross Store is focusing mostly on female shopper segment. Doing ‘’Treasure
hunt’’ it helps to drive traffic, leisure interest, attitude (health, environmental
consciousness, etc.), class structure, hierarchy, and power structure in the society.
Ross Store is using technology for inventory track, data driven customer targeting,
rate on technological diffusion.
Legally Ross Store facing Health and Safety Law, data protection, discrimination law,
issues related to quality, safety and authenticity of products being sold.
Practising sustainable internal operations, climate change, recycling, endangered
species, attitude towards ‘’green’’ or ecological products are Environmental factors.

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Like every other fashion retailer Ross Store have its own competitors and brands.
Manor competitors for Ross Store are TJX, Macy’s, Kohl’s, Burlington, Dillard’s,
Target, PVH, 99 cents only, Walmart. Major competitors are Ross Dress for Less.
Inc., Ross Procurement, Inc., Ross Merchandise, Inc., Retail Assurance Group Ltd.
Please see attached short video about Ross Store competitors.
https://images.comparably.com/videos/competitors/295152.mp4
Primary research - Questionnaire and results.
By creating this questionnaire whit 5 simple questions, where I asked group people
about how satisfied or dissatisfied, they were with Ross Store.
After all data has been collected it was presented on the Gantt Chart below.
1. How satisfied were you with your visit today?
2. How satisfied or dissatisfied were you with the service?
3. Were you satisfied or dissatisfied with the layout of the shop?
4. Will you recommend our shop to family or friend?
5. Overall, how satisfied, or dissatisfied are you with our company?
Answers:
a. Very Dissatisfied
b. Moderately Dissatisfied
c. Slightly Dissatisfied
d. Neutral
e. Slightly Satisfied
f. Moderately Satisfied
g. Very Satisfied
How Satisfied or Dissatisfied
0 2 4 6 8 10 12 14
13127 83 43
Gantt Chart
Very Dissatisfied Moderately Dissatisfied Slightly Dissatisfied
Neutral Slightly Satisfied Moderately Satisfied
Very Satisfied

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Summary:
Analysing this we can see that 13 people out of 50 are Very satisfied with this
retailer, 12 people out of 50 Moderately satisfied, 7 people are Slightly Satisfied, 8
people are neutral, 3 are Slightly Dissatisfied, 4 are Moderately Dissatisfied and 3
people are Very Dissatisfied.
1. Secondary research.
Summary:
On the 30th of January 2021 Ross Store reached $12.531.565 of sales which is lower
than last year 2020 February the 1st which was $16.039.073 as we can see on the
above report summary.
Ross Stores today reported earnings for the 13 weeks ended January 30, 2021 of
$238 million. Sales for the fourth quarter of 2020 were $4.2 billion, with comparable
store sales down 6%, reflecting the negative impact from the upsurge of COVID-19
during the peak holiday selling season.
Barbara Rentler, Chief Executive Officer, commented, “While our fourth quarter sales
exceeded our expectations, the upsurge of the virus resulted in lower traffic,
especially in California, our largest state, where we were subject to more stringent
occupancy and operating hour restrictions.”

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Ross Store and Covid-19 Pandemic.
Ross Stores closed all shops in March due to Covid-19 pandemic, leaving Stores
without any income. In early April Ross Store furloughed their staff as could not open
any time soon.
As a result, in the first quarter Ross Store plummeted 51% of their sales year over
year, which ended in early May. Ross Store began to open the stores in May, also
been able to open all the stores by the end of June.
By then, the damage was done. In late August, the off-price retailers reported big
sales declines for the second quarter of fiscal 2020. Sales fell 33% year over year for
Ross Stores and 39%. The discrepancy mainly related to how quickly the companies
were able to get the bulk of their stores reopened. Comparable sales for reopened
stores declined 12% for Ross Stores.
Conclusion.
Ross Stores has plans to increase its stores by 5% for the 2019 fiscal year. The
company operates in the discount retail market as an off-price seller. While this
market segment is profitable, it faces significant competition from other off-price
sellers. However, I do not think that online retailers like Amazon are much of a
problem as Ross Stores customer base likes to walk into physical stores to bargain
hunt.
Ross Stores strong historical growth is expected to continue at a slower rate. The
company operates profitably with decent margins and moderate debt levels. The
stock price is somewhat expensive with a forward PE multiple of 18.5 times and its
forward dividend yield is only 1.1%.
The main concern I have with Ross Stores’ future growth is with management’s lack
of enthusiasm in their earnings call. The statements made by management give me
reason to be cautious. While I do not see any reason to sell the stock, I am a little
hesitant in buying the stock as I think it is overvalued. Paying high prices for stocks is
acceptable if they provide future growth, but when there are concerns over its future
growth then I will remain cautious and stay on the side lines.

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References:
1. https://images.comparably.com/videos/competitors/295152.mp4
2. https://www.businesswire.com/news/home/20210302006090/en/