Investing in the right industries can significantly boost your portfolio's returns, and discount retail stores are a prime example. Affordable apparel and home goods may not sound like a moneymaking business idea, but there will always be solid demand for these goods. Sector leaders like Ross Stores ( ROST 7.
79% ) and TJX Companies ( TJX 1.98% ) have stomped the broader market in the long run, and they seem well positioned for continued long-term growth. Here's how these two discount retailer giants can help you reach that millionaire milestone in just a few decades.
Ross Stores: "Dress for Less" Ross operates the largest off-price apparel and home fashion chain in the U.S., with 1,764 locations, offering name-brand and designer merchandise at 20% to 60% off department store prices.
It also runs 345 dd's DISCOUNTS stores with moderately priced merchandise at 20% to 70% off. The company sources its goods through direct purchases from manufacturers and suppliers. Ross looks for treasure troves of excess inventory, canceled orders, and overproduction to populate its flow of high-quality, in-season merchandise at deep discounts.
This opportunistic buying strategy allows Ross to provide significant savings on brand-name and designer items, and its "Dress for Less" tag line has become a cultural touchstone over the years. The company's price-centric business model is crystal clear to the average consumer. The company's growth drivers include: Expanding footprint: Ross plans to open.
