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That is because they sell brand-name apparel at big discounts Discount Girard-Perregaux had the chance to buy a glut of merchandise retailers and manufacturers were rushing to clear. Can Ross and TJX keep up their performance? One issue is whether they will secure enough merchandise now retailers are keeping inventories lean even as sales rebound. And some have been cautious when ordering for Discount Glashutte because they are afraid consumers will balk at higher prices related to surging cotton costs. But discounters have proved they can get hold of sufficient merchandise at the right price. Ross had a gross margin of Discount Graham, and it rose to 39.2% in 2010, estimates Paul Lejuez of Nomura. A likely reason is that manufacturers have become more willing to sell directly to Discount Hamilton as traditional retailers scaled back orders. And higher cotton prices could present an opportunity for discounters. Consumers with fixed budgets are more likely to trade down if prices rise across the board. What's more, Ross in particular should benefit from a "packaway" strategy in which about half of inventory is bought to be sold over several months rather than immediately. That means it secured inventory when cotton prices were lower but still can raise sales prices. TJX also keeps some packaway, though it is less than 10% of inventory.