As big malls and department stores close, bargain chains like Ross Dress for Less are rolling out new stores.

Economic anxiety and inflation are leading shoppers to spend less and search for savings. In this bombed-out retail landscape, some chains are thriving and opening new outlets.

At a new Ross in Alhambra, Liz Lopez was shopping for a designer purse. She is a big fan of the Dublin-based chain and thrilled to now have one just 10 blocks from her home.

"I come on Tuesdays for the senior discounts," Lopez said, showing off her new black Dolce & Gabbana purse. "I always find good deals."

The new store on East Valley Boulevard opened this month. One of its sister shops — dd's Discounts, which is owned by the same parent company — opened in North Hollywood.

This year, the parent company, Ross Stores Inc., plans to open 110 new outlets across the country, after 90 last year.

Read more: Ross Dress for Less opens new store in Alhambra

Ross Chief Executive Jim Conroy said Ross is capturing market share by attracting customers away from other retail chains.

“The share shift is more from mainstream retail, department stores and other places like that,” he told analysts after announcing strong growth early this month.

Other discount outlets, including T.J. Maxx, Dollar General, Nordstrom Rack and Five Below, are also expanding to capitalize on tough times.

Read more: As Gen Z turns to thrifting, a Melrose Avenue shop finds success in influencers' overflowing closets

Retail data show shoppers are visiting a broader spectrum of destinations to find lower prices, said Placer.ai, which tracks people’s movements based on cellphone usage.

“Consumers have become increasingly selective and price-sensitive, actively pivoting away from traditional mid-market chains in favor of discount retailers and value-oriented brands,” Placer.ai said in a report this month. “Because affordability remains a core focus, average households are spreading their visits across a wider number of non-discretionary stores to hunt for deals."

Discount retailers have been popular for decades, but a combination of factors is now driving accelerated growth for some, experts said.

Read more: Ross Dress for Less opens new store in Alhambra

Dollar stores and the first off-price retailers rose to popularity in the 1990s, but really took off around 2010 following the recession, according to Dylan Carden, a specialty retail analyst at William Blair.

Since then, the stigma surrounding bargain stores has lessened for both customers and brands.

"They're phenomenal at what they do," Carden said of the major off-price retailers, including Ross and TJX, which owns T.J. Maxx, Marshalls and Home Goods.

In the last year or so, well-established retailers that were already grappling with intense competition from online retailers have been hit as their customers cut back on discretionary spending amid inflation, tariffs and global conflict.

For stores such as Ross, this dip in demand at department stores means a larger supply of discounted products, as they often buy unsold merchandise from struggling high-end outlets and manufacturers.

"These companies offer a tremendous value to shoppers, but they perhaps offer an even greater value to the brands," said Simeon Siegel, a senior managing director at Guggenheim Partners. "They've solidified their role in the retail ecosystem."

Read more: As Gen Z turns to thrifting, a Melrose Avenue shop finds success in influencers' overflowing closets

Five Below, the Pennsylvania-based discount outlet aimed at teens and tweens, opened 150 new stores in 2025 and has plans to open more this year. Its same-store sales rose 15% in the fourth quarter last year.

Ross sells everything from neckties to shower curtains. Its fourth-quarter profits last year rose 10% from the year prior. Ross reported record sales for 2025 of $22.8 billion, up 8% from the year prior. Its net income was $2.1 billion, similar to 2024, while comparable store sales grew 5%.

Investors have been happy with its outperformance.

Ross shares surged around 70% over the past year. TJX shares rose around 30%.

TJX has also seen year-over-year increases in sales and net income, according to its most recent earnings release. It plans to open 146 new stores this year.

"The revenues, the stores, the businesses are doing excellent," Siegel said. "They are absolutely in their stride."

In contrast, some department stores are struggling.

Macy's closed two California locations earlier this year as part of its plan to reduce its footprint by 30% by 2027. Twelve more closures are planned in the coming months across the U.S.

Read more: 'Experiential' retail surges as landlords try to lure customers back to the mall

Saks Global, which owns Saks Fifth Avenue and Neiman Marcus, filed for Chapter 11 bankruptcy protection in January, citing overwhelming debt.

"The department store pressure and the off-price success are not coincidental," Siegel said. "They are clearly linked. Off-price has effectively become the new department store."

In addition to opening new stores, Ross is working to streamline the shopping process by better organizing its stores and adding self-checkout at more branches.

The new Ross in Alhambra has several self-checkout lanes and well-stocked aisles organized into categories such as apparel, technology and cosmetics.

Lopez, a regular at Ross Dress for Less, put a pack of clothing hangers in her cart along with her new purse before checking out.

"I always seem to find what I need," she said.

Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights.

This story originally appeared in Los Angeles Times.