Ross Stores, a discount chain that competes with TJ Maxx and Marshalls, continues to post strong sales.

It's a rare bright spot in a struggling retail industry.

But a visit to a Ross store in Richmond, Virginia, showed products in complete disarray.



Ross Stores has been deemed a "retail treasure" and a "rarity" by Morgan Stanley analysts for its strong sales and earnings growth at a time of widespread distress in the industry.

The discount chain — which competes with stores like TJ Maxx and Marshalls — has opened more than 500 new stores since 2010. It now has more than 1,600 US locations and has reported soaring same-store sales as much of the brick-and-mortar retail industry is struggling.

In the company's most recent quarter, overall sales grew 16% to $4.1 billion, and same-store sales rose 5%, on top of 4% growth last year.

Much like warehouse chain Costco, Ross eschews the decor and frills of traditional retailers. The bare-bones philosophy allows them to pass savings of up to 60% on to customers.

We went to a Ross store in Richmond, Virginia, to see how this "treasure" is luring so many customers when department stores are seeing sales and traffic plunge.