California Centers Magazine serves retailers, developers, shopping center owners, investment sales brokers and tenant representation firms throughout the state of California.
Issue link: https://californiacenters.epubxp.com/i/472297
14 California Centers Magazine | March 2015 C C H aving been a mainstay in the off-price industry for over 30 years, Ross Stores has con- tinued to further its reputation for offering famous name brand label merchandise (like housewares and linens), apparel, accessories and foot- wear for the entire family at low pric- es — the key to this concept's appeal and success. Shoppers are repeatedly drawn to Ross Dress for Less knowing they will fnd items they would have to pay much more for at other depart- ment stores. Ross Dress for Less stores beneft from strategic off-price purchasing techniques that enable the concept to sell quality branded, coveted catego- ries of items for savings of approxi- mately 20 percent to 60 percent off the prices of comparable goods found at retailers on par with the likes of Nord- strom and Macy's. The value pricing is made possible because the corpo- rate buyers negotiate deals on close- out merchandise, end-of-line products and limited assortments (with regard to sizing and color selection) at tre- mendously discounted prices, which are secondarily passed on to the retail- er's customers. As the stores feature a selection of goods for each member of the family, the target customer base encompasses a wide demographic range. But typi- cally, it is the women in the family that make the primary shopping decisions for the household, and thus about 80 percent of the stores' customers are opportunistic females buying for themselves, for other family members, or seeking out gifts for friends, etc. The average growth target for ex- pansion of the Ross chain has re- mained steady at approximately 20 to 50 units added annually nationwide for the past several years. With regard to new locations, Ross Dress for Less seeks to occupy mainly newly devel- oped turnkey locations, versus second generation space. Preference is to be a key component of shopping cen- ters that offer people a mix of product categories within the center that will be routinely visited. The majority of the concept's customers tend to shop multiple stores during a singular out- ing, as well as being notorious for fre- quenting several different Ross store locations within a regional zone. From the landlord's perspective, Ross Stores is viewed as a solid, attrac- tive fnancial model that refects ongo- ing value. The company's long term business goal calls for approximately 1,500 Ross Dress for Less Stores oper- ating nationally (there were approxi- mately 1,215 opened throughout 33 states in the U.S., the District of Co- lumbia, and Guam as of the close of 2014), with signifcant added growth potential. An ideal venue for Ross will be freestanding, in mid- or downtown positioned open-air super regional malls, power centers, lifestyle centers and mixed-use destinations, prefer- ably comprising over 100,000 square feet of GLA. Co-tenancy preference is for nationally recognized anchor tenants (fashion-oriented, discount, outlet and grocery/supermarket ad- jacent) having strong visibility and accessibility from an adjacent freeway. The prototype store size is 30,000 square feet (spaces between 25,000 to 31,000 square feet will be considered). Other requirements entail a minimum of 160 feet of frontage, a population of 100,000 within a fve-mile trade radi- us, and traffc count of approximately 40,000 cpd. The target core customer income level is low to middle. The typical lease term commitment is for 10 years initially, with four fve- year options. Real estate negotiations and lease details typically take three months to meet with corporate real estate committee approval. CC Real estate inquiries and site submittals can be directed to: Richard Lietz, Regional VP, Real Estate, or Jack Toth, Director, Real Estate, Ross Stores, Inc., 4440 Rosewood Avenue, Building 4, Pleasanton, CA 94588 (925) 965-4400 or email: real.estate1@ros.com ROSS STORES Features fabulous fnds, every day The average growth target for expansion of the Ross chain has remained steady at approximately 20 to 50 units annually.