Nordstrom, Inc. vs Ross Stores, Inc.: Strategic Comparison

This in-depth comparison examines Nordstrom, Inc. and Ross Stores, Inc. across revenue, market value, business model, competitive positioning, and long-term growth strategy. Whether you are researching Nordstrom, Inc. on its own, evaluating Ross Stores, Inc., or weighing the two companies side by side, the breakdown below highlights where each company leads and where the gap between Nordstrom, Inc. and Ross Stores, Inc. is widest.

On the headline numbers, Nordstrom, Inc. reports annual revenue of $15.0B against $22.8B for Ross Stores, Inc., while their respective market capitalizations stand at N/A and $73.7B. Nordstrom, Inc. is headquartered in United States and Ross Stores, Inc. operates from United States, and those different home markets shape how each company competes.

Nordstrom, Inc.: Nordstrom, Inc. is a Seattle-based fashion retailer selling apparel, shoes, beauty, and accessories through full-line Nordstrom stores, Nordstrom Rack off-price stores, Nordstrom Local service hubs, Nordstrom.com, and NordstromRack.com in the United States. Founded in 1901, it is run by the fourth generation of the Nordstrom family: co-CEOs Erik and Pete Nordstrom and chief merchandising officer Jamie Nordstrom. The family and El Puerto de Liverpool took the company private in May 2025 in a deal valued at about $6.25B.

Ross Stores, Inc.: Ross Stores runs two off-price chains. Ross Dress for Less sells name-brand apparel, footwear and home fashions at 20% to 60% below department and specialty store regular prices. dd's DISCOUNTS targets a more moderate-income shopper with savings of 20% to 70% versus moderate department and discount store regular prices. Both operate in strip centers and rely on fast-changing assortments rather than e-commerce.

Nordstrom, Inc. and Ross Stores, Inc. pursue distinct approaches to generating revenue, and understanding how each company operates is the foundation of any fair comparison between Nordstrom, Inc. and Ross Stores, Inc..

Nordstrom, Inc. business model: Nordstrom makes money by selling apparel, shoes, beauty, accessories, and home goods through two banners. The Nordstrom banner covers full-line department stores, Nordstrom Local service hubs, and Nordstrom.com, selling designer and premium brands at full price with services such as alterations and styling. Nordstrom Rack covers off-price stores and NordstromRack.com, selling mostly merchandise bought specifically for Rack at lower prices. Nordstrom also earns revenue from its credit card program with TD Bank and from its Nordy Club loyalty ecosystem. In FY2024, net sales were $14.557B and total revenues, including credit card revenue, were $15.016B.

Ross Stores, Inc. business model: Ross earns nearly all revenue from in-store merchandise sales at Ross Dress for Less and dd's DISCOUNTS. More than 800 merchants buy branded apparel, footwear, home goods and accessories from manufacturer overruns, canceled orders and closeouts. Part of that buying is held as packaway inventory for later seasons. Stores are self-service with simple fixtures in strip centers, which keeps occupancy and labor costs low, and assortments change constantly so shoppers return often. Ross does not sell merchandise online.

The durability of a company's moat often decides long-term winners. Here is how the competitive advantages of Nordstrom, Inc. stack up against those of Ross Stores, Inc..

Nordstrom, Inc. competitive advantage: Nordstrom's advantage is a service reputation built over 125 years combined with a connected store, digital, and off-price network. Shoppers can buy online and pick up, return, or get alterations in stores, and Rack introduces younger, value-focused customers who often move to the full-price banner. Management says a good share of new Rack customers shop Nordstrom within three to four years. Family control also lets leadership invest for the long term without quarterly public reporting.

Ross Stores, Inc. competitive advantage: Ross's edge is buying scale plus low operating cost. A large merchant team and long vendor relationships give it access to branded closeout goods, and lean store formats let it price 20% to 60% below department store regular prices while still earning a double-digit operating margin. Staying store-only avoids the shipping and returns cost that weighs on online sellers of low-ticket apparel.

Future prospects matter as much as current results. The growth strategies below explain how Nordstrom, Inc. and Ross Stores, Inc. each plan to expand from here.

Nordstrom, Inc. growth strategy: Nordstrom's growth plan has three parts. First, accelerate Nordstrom Rack, its largest source of new customers, with 22 openings in 2025 and a goal of up to 50 per year. Second, refine full-line store assortments, adding younger brands such as Princess Polly and planned 2026 additions such as NikeSkims and Hill House Home. Third, use real estate freed up by competitor bankruptcies, including Saks Global, where the right locations appear. Liverpool shares ideas on logistics and technology but the deal is not a merger, and the two retailers operate separately.

Ross Stores, Inc. growth strategy: Growth comes mainly from new stores and comparable store sales. Ross raised its 2026 opening plan to 115 locations after opening 64 in the first half. Under CEO Jim Conroy, the company has added marketing, brand-forward merchandise and in-store experience changes, and management credits traffic from both new and existing customers for the 2026 comp gains.

A closer look at the financial trajectory of Nordstrom, Inc. and Ross Stores, Inc. rounds out the comparison.

Nordstrom, Inc.: Nordstrom's last public annual report covered FY2024 (ended February 1, 2025): total revenues of $15.016B, net sales of $14.557B, and net earnings of $294M, up from $134M in FY2023. Revenue peaked at $15.860B in FY2018, fell to $10.715B during the FY2020 pandemic year with a $690M loss, and has hovered around $15B since. Since going private in May 2025, Nordstrom no longer publishes quarterly results. Leadership told WWD in early 2026 that the company had less debt than a year earlier and had already repaid the debt taken on for the buyout using operating cash.

Ross Stores, Inc.: Ross grew sales from $12.9 billion in fiscal 2016 to $22.8 billion in fiscal 2025, with a sharp dip to $12.5 billion in pandemic-hit fiscal 2020. Net income reached $2.1 billion in fiscal 2025. Fiscal 2026 accelerated: Q1 sales rose 21% to $6.0 billion on 17% comps, and Q2 sales rose 13% to $6.3 billion on 10% comps. Q2 net income of $851 million included about $253 million in IEEPA tariff refunds, worth roughly $0.60 per share. Ross plans to repurchase $1.275 billion of stock in fiscal 2026 under a two-year $2.55 billion authorization approved in March 2026.