Shoppers Find Other Retailers during Bad Economic Times

Article of discussion: Ross Profits equals street view; stands by outlook
http://www.reuters.com/article/marketsNews/idINN1941333520090319?rpc=44

Ross Stores Inc. reported its profits last week and meet Wall Street's expectations and the company full-year outlook. This is due to consumers remaining desire for name brand clothing, which Ross offers at relatively attractive prices. "The company's low prices for brand name merchandise- from clothes to home goods- have attracted consumers seeking deep discounts as they grapple with job losses, tighter access to credit and weak home values.

The chances of buying top-brand items cheaply as increased with the closing of competitive department stores such as Goody's and Mervyn's. Other department stores, such as Macy's and J.C. Penny plan to lean inventories to match consumer demand. This is leaving manufacturers with excess merchandise that Ross can buy for a low price. The Chief Executive of Ross Stores, Inc. reported that the name brands have never been better due to the current economy and slow down of buying from other stores.

The company's net profit rose to $97.4 million in the quarter ending January 31. Profits for the organization are at $94.5 million and sales are steadily on the rise. This proves that consumers are still shopping...but shopping smarter and always on the search for a bargain.