Ross Stores to add 850 jobs with $450 million expansion in Randolph – Business North Carolina

Retailer Ross Stores said Tuesday it will spend $450 million to build a Southeastern region distribution center in Randleman that will create 852 jobs in Randolph County.

The company, which has $20 billion in annual revenue and is based in Dublin, California, will build its ninth distribution center in a 1.7 million square-foot facility on 330 acres for warehousing, fulfillment and packing operations.

“We are excited about the opportunity to build out a new distribution facility in North Carolina to support our growth initiatives over the long term,” said Supply Chain Executive Vice President Rob Kummerer in a statement.

Ross currently has 51 stores in North Carolina, making it the seventh-biggest state for the company. Virginia has 39 stores. Overall, the company has 1,764 locations in 43 states, the District of Columbia and Guam.

First-quarter sales were $4.9 billion, up 8 percent, and earnings were $488 million, up 31 percent.

The new jobs in Randolph County could create a potential payroll impact of more than $39 million for the region each year.

Ross’ project in North Carolina will be facilitated, in part, by a Job Development Investment Grant awarded to Ross Dress For Less, which was approved by the state’s Economic Investment Committee earlier Tuesday.

Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $1.4 billion. Using a formula that takes into account the new tax revenues generated by the new jobs and the capital investment, the grant authorizes the potential reimbursement to the company of up to $7.6 million spread over 12 years.

State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.

The project’s projected return on investment of public dollars is 61 percent, meaning for every dollar of potential cost to the state, the state receives $1.61 in state revenue.

Ross’ grant agreement could also move as much as $845,700 into a fund that helps rural communities across the state attract business in the future. When companies select a site located in a Tier 2 county such as Randolph, their grant agreements move some of the new tax revenue into the state’s Industrial Development Fund utility account.

Local communities in more economically challenged areas of the state use grants from the Utility Account to build public infrastructure projects, which can improve a community’s ability to attract companies to their regions.