Aarons 2000 Annual Report Download - page 14

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Keeping pace with the fast-track store expansion, Aaron Rents opened its sixth distribution center
last year in Baltimore with the seventh center scheduled for opening in the first quarter of 2001 in North
Carolina. These centers in key locations across the country are part of the Company’s long-term strategy
to maintain its competitive advantage in its markets through the efficiencies and cost benefits, control
of design, quality and inventory—all of which translates into lower prices and prompt delivery of mer-
chandise to customers.
Aaron’s distribution centers enable the Company to purchase products in large quantities, resulting
in major competitive advantages. Vendors give priority to Aaron’s in filling and shipping orders. Volume
buying also commands substantial cost savings, and the benefit is passed on to the stores, both Company-
operated and franchised. The stores, in turn, provide pricing incentives to customers. In addition, the
capacity of the distribution system enables Aaron’s to take advantage of special offers by vendors at
extremely favorable prices.
Aaron’s stores rely on the distribution centers for quick replenishment of inventory, avoiding the
problem of overstocking and better managing inventory flow. The distribution centers typically deliver
twice a week to stores within a 150-mile radius and once a week to stores beyond that distance. Even on
out-of-stock items, a store can process the customer’s order and provide the merchandise, rather than lose
the order, by virtue of the quick delivery from a distribution center—a strategic capability unmatched by
any competitor. Another major advantage for the stores is less warehouse space being needed at store
facilities, permitting larger showrooms, displaying more merchandise and increasing rentals and sales.
The distribution centers provide the base for the Company’s highly effective strategic partnerships
with vendors. The Partners in Profit program provides millions of dollars from name brand vendors for
cooperative advertising. When the advertising brings customers into the stores, the advertised products
from major manufacturers and vendors are in the showrooms and warehouses, backed by the unique
advantage of quickly available stock in the distribution centers. The Partners in Profit program creates
good relationships with the suppliers who realize substantial sales of their products.
The Company ranks as one of the leading wholesale buyers of large-screen televisions, and its total
purchases from key vendors and major manufacturers in the Partners in Profit program increased by
42% from 1999 to 2000, reflecting the growing importance of Aaron Rents in its markets—opening
new doors of opportunity.
Giving back to the community is a priority of the people of Aaron Rents. They give of their time
and talents in volunteer efforts, supporting the financial donations made through Aaron’s
Community Outreach Program (acorp). In only two years, acorp has returned more than
$700,000 to communities served by the Company’s stores meeting performance goals and qualifying
for $500 each month to be donated by store associates to local charities.
Acorp supports organizations such as the Make A Wish Foundation and Habitat for Humanity, which
receive donations from Aaron Rents, while the stores give to local chapters and affiliates. Associates at
many stores work together to support educational and after-school programs in their communities.
Acorp provides assistance to Samaritan House/CAFÉ 458, an Atlanta shelter for the homeless and
those needing a fresh start, with a wide range of free services from alcohol and substance abuse support
groups to a free clothing closet and a full-service restaurant where meals are served by volunteers.
Also receiving help is the Toys for Tots program to which acorp gave approximately $20,000 in toy
donations in 2000.
The third Habitat for Humanity house sponsored by acorp was part of the Jimmy Carter Work
Project 2000 “Blitz Build,” which ended substandard housing in Sumter County, Georgia—said to be
the first county in the world to end poverty-level housing. acorp Volunteers helped build the house,
an experience that left the Aaron’s associates feeling they were beneficiaries too.
The spirit of acorp was expressed by Bill Tuccio of Aaron’s Sales & Lease Ownership Florida Region:
“How many people have fun and help someone at the same time? That’s what it’s all about, and that’s
what makes us feel good.”
Aaron’s Community Outreach Program
Giving Back To Our Communities