Ross Stores did something unusual in 2025. As other companies in the industry consolidated their real estate footprint, the company continued to open more brick-and-mortar locations. The company has opened 90 new stores between its flagship Ross Dress for Less and sister chain DD’s Discount. Meanwhile, other companies such as Dollar General announced earlier this year that they would close about 100 physical stores. Walgreens also announced it will close hundreds of stores in 2025. As far as investors are concerned, the bet on brick-and-mortar stores appears to have paid off. Ross Stores hit a record high in early December, and its stock is up more than 20%, outpacing the S&P 500’s 17.9% rise. The stock has risen further since the company reported better-than-expected results in the third quarter and raised its outlook for the fourth quarter. ROST 3M Mountain ROST 3 Month Chart Stocks continue to rise despite trade unrest and concerns about the economy and tariffs. Analysts covering the stock say the company’s resilience in a volatile tariff environment could be a tailwind for the stock in 2026. “Weak companies are taking a lot of market share, like department stores closing stores, and that money needs to go somewhere,” Citi’s Paul Lejuès told CNBC. “Off-price has proven over time to be very good at gaining market share.” Lejuez rates Ross a buy. Customers are also prioritizing value-driven purchases, he added. “Whether the environment is good or bad, consumers are generally drawn to value and off-price concepts. When the environment is not as good, they’ll probably take a little more share, but just because consumers feel a little better about their finances doesn’t mean they won’t take share,” Lejuez said. The outlook for U.S. consumers is mixed through 2025 as President Donald Trump pushes for more protectionist trade policies. President Donald Trump has increased tariffs on China, the world’s largest clothing manufacturer. Surcharges on imports from Canada and Mexico, the United States’ largest trading partners, were also increased. China has retaliated with its own obligations, as have Canada and Mexico. Other discount retailers were also able to weather the tariff storm. Marshalls’ parent company, TJX, soared nearly 30% in 2025. That’s a sign of more upside for Ross Stores heading into the new year, according to Wells Fargo analyst Ike Borshaw. Strategic shift Ross Stores is also benefiting from new leadership. James Conroy joined Ross Stores as chief executive officer in February. Since then, the company has ramped up its marketing efforts and strived to improve its in-store experience. “Nearly 12 months after new CEO Conroy took over, we have noticed that our strategic initiatives are moving forward and perhaps bearing fruit,” Borshaw wrote. “The year got off to a strong start, with foot traffic and CC spending both declining through June, but rebounding in July as promotions increased throughout the month,” he said. “Once August arrived, the trend started to stabilize at +1% to 1.5%, and continued that way through September.” Borsjo’s price target is $200, which could represent a 10% upside from Thursday’s closing price. Customer traffic at Ross Stores is also on the rise. According to Citi analysts, pedestrian numbers rose 5.5% in the second quarter, compared with 3.9% in the first quarter, according to figures from location data platform Placer.ai. This data is important because Ross and dd’sdiscounts do not have an e-commerce presence and are solely focused on foot traffic to drive revenue. “Their in-store shopping experience is like a treasure hunt that consumers really want to go on. I don’t think they need to engage with the e-commerce channel,” Lejuez said. “In fact, I think it really helped their bottom line.”
