Item 2. PROPERTIES

At February 1, 2014, we operated a total of 1,276 stores, of which 1,146 were Ross locations in 33 states, the District of Columbia and Guam, and 130 were dd’s DISCOUNTS stores in 10 states. All stores are leased, with the exception of three locations which we own.

During fiscal 2013, we opened 65 new Ross stores and closed 10 existing stores. The average approximate Ross store size is 29,100 square feet.

During fiscal 2013, we opened 23 new dd’s DISCOUNTS stores and closed one existing store. The average approximate dd’s DISCOUNTS store size is 23,600 square feet.

During fiscal 2013, no one store accounted for more than 1% of our sales.

We carry earthquake insurance to help mitigate the risk of financial loss due to an earthquake.

Our real estate strategy in 2014 is to open stores in states where we currently operate to increase our market penetration and to reduce overhead and advertising expenses as a percentage of sales in each market. We also expect to continue our store expansion in newer markets in 2014. Important considerations in evaluating a new store location in both newer and more established markets are the availability and quality of potential sites, demographic characteristics, competition, and population density of the local trade area. In addition, we continue to consider opportunistic real estate acquisitions.

The following table summarizes the locations of our stores by state/territory as of February 1, 2014 and February 2, 2013.

Where possible, we obtain sites in buildings requiring minimal alterations, allowing us to establish stores in new locations in a relatively short period of time at reasonable costs in a given market. At February 1, 2014, the majority of our stores had unexpired original lease terms ranging from three to ten years with three to four renewal options of five years each. The average unexpired original lease term of our leased stores is five years or 21 years if renewal options are included. See Note E of Notes to Consolidated Financial Statements.

See additional discussion under “Stores” in Item 1.

The following table summarizes the location and approximate sizes of our distribution centers, warehouses, and office locations as of February 1, 2014. Square footage information for the distribution centers and warehouses represents total ground floor area of the facility. Square footage information for office space represents total space occupied. See additional discussion in Management’s Discussion and Analysis.

¹We are currently in the process of completing the infrastructure build-out of this distribution center site with an estimated occupancy of 2014.

²We are currently in the process of completing construction of these warehouses with an estimated occupancy of 2014.

³We plan to purchase our New York buying office in 2014.

4Our former corporate headquarters is leased under several facility leases the majority of which expire in June 2014. The lease term for the remaining space of approximately 11,000 square feet expires in March 2015. We do not plan to renew any of these leases. In January 2014, we moved to our current corporate headquarters in Dublin, California.

See additional discussion under “Distribution” in Item 1.