You’ve probably walked into a Ross and felt that immediate, slightly chaotic rush. Fluorescent lights, racks packed tighter than a subway car, and that distinct scent of brand-new polyester and home candles. It’s not "luxury" in the traditional sense, but for millions of Americans, it’s a gold mine. Honestly, most people assume Ross has always been this way—a massive, beige box of bargains.
But the Ross Dress for Less history is actually a wild story of a failed department store that survived by basically admitting it was wrong.
It started in 1950. A guy named Morris "Morrie" Ross opened the first Ross Department Store in San Bruno, California. Back then, it wasn't a discount haven. It was a junior department store. Morrie was the definition of a grinder, reportedly working 85 hours a week just to keep the lights on and the books balanced. He did the buying, the accounting, the sweeping—everything.
By 1958, he’d had enough of the 80-hour weeks and sold the six-store chain to William Isackson. For the next two decades, Ross just... existed. It didn't thrive. It was a small, local player in a world dominated by giants.
The 1982 Pivot That Changed Everything
If you want to know when the "modern" Ross was born, it was August 1982. A group of investors led by Stuart Moldaw and Mervin Morris (the guy who started Mervyn’s) bought the six stores. They looked at the struggling department store model and decided to blow it up.
They had a crazy idea: stop trying to be a fancy department store and start being a professional liquidator.
They rebranded to Ross Dress for Less. Within three years, they didn't just grow; they exploded. They went from those original 6 stores to 107 locations by 1985. How? They hunted for "zombie" real estate—empty store spaces in malls and shopping centers that nobody wanted—and filled them with designer leftovers.
It was a brilliant, "no-frills" strategy. They didn't spend money on fancy mannequins or expensive TV ads. They spent it on buyers who knew how to pounce on "packaway" inventory—merchandise that other retailers overordered or canceled.
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The Numbers Don't Lie
By 1992, Ross hit a massive milestone: $1 billion in annual sales.
That same year, they tested something called "Home Accents." You know that aisle where you find the random marble bookends and $12 designer pillows? That was a gamble back then. It worked so well that they rolled it out to every store, turning Ross from just a clothing rack into a full-blown lifestyle destination for people who love a good "treasure hunt."
Why Ross Still Matters in 2026
Fast forward to today. As of January 2026, the retail landscape is a graveyard of former giants. Bed Bath & Beyond is a memory, and mid-tier malls are struggling. Yet, Ross is hitting all-time highs. On January 8, 2026, their stock price (ROST) touched $189.27.
Why? Because Ross is basically "Amazon-proof."
You can't replicate the Ross experience online. The company famously refuses to sell its core products via e-commerce. It sounds suicidal in 2026, right? Wrong. The shipping costs and return rates on a $15 dress would kill their margins. Instead, they’ve leaned into the "Treasure Hunt" psychology.
Shoppers visit Ross because they don't know what they'll find. It’s a dopamine hit.
Expanding the Empire
It’s not just the main brand anymore. In 2004, they launched dd’s DISCOUNTS. If Ross is "off-price," dd's is "even-more-off-price." It targets an even more budget-conscious demographic, and in 2025, leadership signaled they were accelerating these openings to capture the "value migration" happening across the country.
What Most People Get Wrong About the "Mess"
If you’ve ever complained that a Ross store looks messy, you’re missing the point. The "mess" is a feature, not a bug.
Keeping stores lean—minimal staff, simple racks, no fancy displays—allows them to keep their operating margins around 11.6%, which is incredible for this sector. They aren't trying to be Nordstrom. They are trying to be a high-velocity engine that moves brand-name goods at 20% to 60% below department store prices.
Key Historical Milestones:
- 1950: Morrie Ross opens the first store in San Bruno.
- 1982: Strategic pivot to the off-price model we see today.
- 1985: IPO on the Nasdaq at $17 a share.
- 2004: Launch of dd’s DISCOUNTS.
- 2024: Surpassed 2,100 total locations across 43 states.
- 2026: Reached a target of nearly 2,300 stores with a long-term goal of 3,600.
How to Shop Ross Like an Expert
Understanding the history is cool, but using it to save money is better. Ross buyers are constantly negotiating. This means new shipments arrive daily, not weekly.
- Shop Tuesday or Wednesday: This is usually when the "weekend chaos" has been cleared and the new mid-week shipments are hitting the floor.
- Look for the "Packaway" Items: These are the gems. Sometimes Ross buys a designer's entire overstock from last season and holds it in a warehouse for months before putting it out. That's how you find high-end coats in the middle of a random Tuesday.
- The "Pink Tag" Secret: Keep an eye out for clearance tags. If a brand-name item hasn't moved in a few weeks, they mark it down aggressively to make room for the next truck.
Ross Stores, Inc. didn't become a $60+ billion market cap giant by accident. They stayed disciplined. While other retailers chased expensive websites and "experiential" flagship stores, Ross stayed in its lane: cheap rent, no-frills, and incredible buying power.
In a 2026 economy where every dollar is being squeezed, that 1982 pivot looks more like a stroke of genius every single day.
Actionable Insights for 2026
If you’re looking to capitalize on the "off-price" trend, whether as a shopper or an observer of the business, focus on the inventory turnover. The faster a store looks "new" to a customer, the more successful it is. Ross manages this better than almost anyone in the game by keeping their supply chain diverse—no single vendor accounts for more than 2.5% of their total purchases. This protects them from supply shocks and keeps the "treasure" fresh.
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Next time you're digging through a rack of $9 graphic tees, remember Morrie Ross and his 85-hour work weeks. He might not recognize the giant his name has become, but he’d definitely respect the hustle.