R
oss Dress for Less has renewed its lease for the flagship store at 799 Market Street in Downtown San Francisco's Union Square area. The eight-story building, which Ross has occupied for nearly 40 years, spans 55,300 square feet and will continue to house the retailer on four floors, including a basement and three upper levels.

    Industry insiders suggest that the lease renewal is a 10-year deal with two options for renewal through 2045. This move comes as ASB Real Estate Investments, the Maryland-based owner of the building, listed it for sale at $50 million or $344 per square foot last month.

    Ross plans to open a second store nearby, covering 40,000 square feet, which will help alleviate pressure on its flagship location. The new store is set to open in an undisclosed location but will be situated near the current flagship store.

    The Union Square shopping district has seen several high-profile closures, including Nordstrom Rack and Old Navy. However, Ross Stores remains committed to expanding in San Francisco, with 1,836 stores across 43 states, the District of Columbia, and Guam.

    In its recent earnings call, Ross Stores reported total sales growth to $5.1 billion year-over-year but expressed disappointment in third-quarter sales results due to severe weather and persistently high costs affecting discretionary spending among low-to-moderate-income customers.