Ross Stores (ROST)

In fiscal 2008, we continued to invest in new information systems and technology to provide a platform for growth over the next several years. Recent initiatives include the following:

• We completed development and began the rollout of demand forecasting software and related process changes designed to strengthen our merchandise planning effectiveness. We expect this initiative to drive gradual increases in store sales productivity and profitability by improving our ability to plan, buy and allocate product at a more local level. We plan to complete this rollout in fiscal 2010.
• We implemented additional supply chain enhancements to support expansion of processing and storage facilities and to increase operating efficiency. These improvements included the expansion of a distribution center and enhanced warehouse management functionality.
• We completed the rollout of new tools to better support the continued growth of our import business. These new tools provide our merchants with greater visibility into item cost components and inbound movement of import products.
• We completed a project to implement new labor standards across our entire store base. As part of this project, we developed tools to more effectively generate store schedules by optimizing in-store tasks, available resources, and planned payroll budgets.
• We completed a project to implement new online tools to assist our stores in their recruiting and hiring efforts. These new tools are designed to help our store managers expedite the hiring process and increase the quality of hiring decisions.
• We implemented additional enhancements to our POS systems to reduce customer transaction and wait times.
• We upgraded our loss prevention software to allow for greater in-depth analysis and reporting, and completed the rollout of additional store video surveillance systems to provide corporate and centralized remote monitoring.
• We completed a project to integrate our systems with a third party payment services network to streamline our invoice processing and payment process. This project provides us with new capabilities which we are using to help lower our invoice processing costs and to increase our cash management efficiency.

In fiscal 2008, we continued to
invest in new information systems and technology to provide a platform for
growth over the next several years. Recent initiatives include the
following:

• We completed development and began the
  rollout of demand forecasting software and related process changes designed to
  strengthen our merchandise planning effectiveness. We expect this initiative
  to drive gradual increases in store sales productivity and profitability by
  improving our ability to plan, buy and allocate product at a more local level.
  We plan to complete this rollout in fiscal 2010.
  
• We implemented additional supply chain
  enhancements to support expansion of processing and storage facilities and to
  increase operating efficiency. These improvements included the expansion of a
  distribution center and enhanced warehouse management functionality.
  
• We completed the rollout of new tools to
  better support the continued growth of our import business. These new tools
  provide our merchants with greater visibility into item cost components and
  inbound movement of import products.
  
• We completed a project to implement new labor
  standards across our entire store base. As part of this project, we developed
  tools to more effectively generate store schedules by optimizing in-store
  tasks, available resources, and planned payroll budgets.
  
• We completed a project to implement new
  online tools to assist our stores in their recruiting and hiring efforts.
  These new tools are designed to help our store managers expedite the hiring
  process and increase the quality of hiring decisions.
  
• We implemented additional enhancements to our
  POS systems to reduce customer transaction and wait times.
  
• We upgraded our loss prevention software to
  allow for greater in-depth analysis and reporting, and completed the rollout
  of additional store video surveillance systems to provide corporate and
  centralized remote monitoring.
  
• We completed a project to integrate our
  systems with a third party payment services network to streamline our invoice
  processing and payment process. This project provides us with new capabilities
  which we are using to help lower our invoice processing costs and to increase
  our cash management efficiency.

In fiscal 2007, we continued to invest in new systems and technology to provide a platform for growth over the next several years. Recent initiatives include the following:

• We introduced a chain level update to our store network to increase communication bandwidth while decreasing monthly recurring costs. This improvement allowed us to deploy additional capabilities in the stores and to improve operational efficiencies.
• We completed the majority of the development efforts related to testing and piloting new demand forecasting software and related process changes that are designed to strengthen our merchandising capabilities. The projected benefit from these new tools is more effective merchandise planning and trending processes for both sales and inventory. We believe this initiative will lead to gradual increases in store sales productivity and profitability across the chain by improving our ability to plan, buy and allocate product at a more local or even store level. We plan to gradually roll out these capabilities over the next few years.
• We began developing new capabilities to better support the continued growth of our import businesses. These improvements are designed to give our merchants greater visibility into item cost components and inbound movement of import products. We plan to roll out these new capabilities in fiscal 2008.
• We implemented additional enhancements to our supply chain systems in order to decrease monthly recurring costs, and to support expansion of processing and storage facilities. These improvements provided increased supply chain visibility and improved freight routing capabilities.
• We implemented enhancements to our POS systems in order to reduce customer transaction and wait times.
• We upgraded our Loss Prevention software to allow for additional analysis and reporting while also connecting a number of our store video surveillance systems to provide corporate remote access.

In fiscal 2007, we continued to
invest in new systems and technology to provide a platform for growth over the
next several years. Recent initiatives include the following:

• We introduced a chain level update to our
  store network to increase communication bandwidth while decreasing monthly
  recurring costs. This improvement allowed us to deploy additional capabilities
  in the stores and to improve operational efficiencies.
  
• We completed the majority of the development
  efforts related to testing and piloting new demand forecasting software and
  related process changes that are designed to strengthen our merchandising
  capabilities. The projected benefit from these new tools is more effective
  merchandise planning and trending processes for both sales and inventory. We
  believe this initiative will lead to gradual increases in store sales
  productivity and profitability across the chain by improving our ability to
  plan, buy and allocate product at a more local or even store level. We plan to
  gradually roll out these capabilities over the next few years.
  
• We began developing new capabilities to
  better support the continued growth of our import businesses. These
  improvements are designed to give our merchants greater visibility into item
  cost components and inbound movement of import products. We plan to roll out
  these new capabilities in fiscal 2008.
  
• We implemented additional enhancements to our
  supply chain systems in order to decrease monthly recurring costs, and to
  support expansion of processing and storage facilities. These improvements
  provided increased supply chain visibility and improved freight routing
  capabilities.
  
• We implemented enhancements to our POS
  systems in order to reduce customer transaction and wait times.
  
• We upgraded our Loss Prevention software to
  allow for additional analysis and reporting while also connecting a number of
  our store video surveillance systems to provide corporate remote
  access.

In fiscal 2006, we continued to invest in new systems and technology to provide a platform for growth over the next several years. Recent initiatives include the following:

• We implemented additional enhancements to our Core Merchandising applications in order to support our continued growth. We are now in the process of implementing capabilities which we will use to enhance our new store opening process, pre-season planning, and in-season trending. We plan to roll out these enhancements over the next few years.
• We introduced a new store-level Task Management System, which allows us to improve store staff productivity, better monitor and address problems and improve two-way communications between corporate personnel and personnel in the field.
• We began a chain level update to our store network in order to increase communication bandwidth while decreasing monthly recurring costs. We plan to complete this network upgrade in fiscal 2007. This improvement will open the opportunity to deploy additional capabilities in the stores, to streamline internal processes and to improve operational efficiencies.
• We implemented enhancements to our Transportation Management System. These improvements provided increased supply chain visibility and improved freight routing capabilities.
• We implemented additional enhancements to our Warehouse Management System at all distribution centers. These improvements provided increased operational and inventory control, as well as improved transaction accountability.

Information Systems

During 2005, we continued to invest in new systems and technology to provide a platform for growth over the next several years.  Recent initiatives include the following:

Information Systems

During 2004, the Company continued to invest in new systems and technology to provide a platform for growth over the next several years.  Recent initiatives include the following:

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