Where some see failure, others see opportunity.

Off-price retailer Ross Stores says there may be an upside, at least for it, to the handful of retailers who have gone belly-up this past year, hurt by tight credit markets, higher costs and a decline in consumer spending.

More bankrupt retailers means less competition for customers, as well as the opportunity for Ross to snag leftover merchandise at fire-sale prices.

“The environment might be better than most of us think for the retailers who are surviving,” Ross Chief Executive Michael Balmuth said during a call with analysts. 

“Who knows, if post the election, things are going to get better in the economy. I don’t think anyone is really forecasting that, so we continue to watch other retailers and run conservative inventories and try and take advantage of opportunities, (and) do the best job that we can in this type of environment,” Balmuth continued.

Retailers filing for bankruptcy protection this year include apparel retailers Steve & Barry’s LLC and Goody’s Family Clothing Inc; department store chain Boscov’s Inc, home goods retailers Linens and Things Inc and Sharper Image Inc; and jewelers Friedman’s Inc and Whitehall Jewelers Holdings Inc.

Ross reported a 40 percent profit jump today as cash-strapped customers shifted to the off-price retailer from pricier department stores. Like other off-price retailers such as TJX Cos Inc, Ross buys excess apparel, accessories and home goods in bulk from manufacturers at below-wholesale prices. It has succeeded in luring consumers pressured by higher gas and food prices and the troubled housing market.

(Ross logo/Ross Stores)