Ross on rebound; redesign accents men's - Ross Stores, an off-price retailer; men's apparel

Ross on Rebound: Redesign Accents Men's

NEWARK, Calif. -- The men's apparel department is a major beneficiary of off-pricer Ross Stores' new updated and upscaled prototype store, which was unveiled recently in six new locations throughout the country.

Designed to effectively present the company's merchandise offering, the new interiors include more display space, updated fixtures and signage, and a more organized and cohesive floor plan.

The debut of the new prototype comes in the midst of a financial rebound for the chain. The 137-unit men's and women's off-pricer, based here, recently reported a healthy 8 percent comparable store sales gain for the second quarter, ended July 30.

In men's wear, Ross has created shops within the department, setting off active, casual and tailored apparel through the use of teal floor-to-near-ceiling, open-grid display fixtures and dividers.

Within each men's shop, there is now more emphasis on total looks and coordinated displays that not only include layering of apparel, but also accessory items.

All of these upgraded design elements are used throughout Ross' new prototype, and together, give the family off-price chain an updated atmosphere that now distinguishes it from much of the competition.

Just last year, T.J. Maxx invaded Ross' home state, and the Newark, Calif.-based retailer has been facing off against Marshalls in much of its territory for a number of years now.

While the new interior gives Ross an edge, the design does not deviate greatly from the past or go beyond its off-price image--the value orientation is still clear.

Instead, the new Ross prototype leaves behind a dark color scheme, picking up on brights and pastels. The store has also eschewed its "Don't pay department store prices" signs that were previously scattered on the walls throughout the store.

Other updated changes include a more organized layout. While the basic racetrack design is the same, the placement of individual departments is more distinct.

Women's World, Ross' large-size department, and petites are separated from the other women's apparel areas by the dividers, providing both better definition and additional display space.

All of the apparel departments feature more rounders and display fixtures, and fewer straight racks.

Changes have been made in accessories as well, with a floor-to-ceiling rainbow of women's socks now adding a colorful presentation to the department.

Ross' shoe area has also been upgraded with lower profile racks that feature slat mirrored endcaps. Gone are the single and narrow mirrors previously located on the fixtures and often obscured by scattered stacks of shoes.

The visually cleaner and updated approach comes at a time when Ross is recovering from tumultuous times.

Within the last two years, three men have held the chief executive officer position, which is now in the hands of Norman Ferber. And in 1986 the chain was forced to close 25 stores in the oil patch market, contributing to a total net income loss in fiscal 1987 of $41.5 million.

However, Ross' financial picture began to improve last year, and so far this year, the chain is posting strong results. Earnings before taxes and extraordinary items were $8.4 million for the first six months of this year, compared to just $556,000 during the same period in 1987.

Total sales through the first six months of 1988 hit $278.8 million, up 8.4 percent from last year's $257.1 million.

"The strategies begun in 1987 have strengthened the company's performance," said Ferber. "The results of the first six months of 1988 have been very good and are in line with previously reported estimates."

With its financial position on steadier ground, Ross has also moved recently to buy back some of its stock, snaring some 2.7 million shares last month from the Jack Eckerd Corp. in a private transaction. The off-pricer also said it intends to purchase 300,000 more shares at a future date.

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