Aarons 2002 Annual Report Download - page 13

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11
The rent-to-rent division of Aaron
Rents, the Company’s original
line of business, continues to gen-
erate solid cash flow necessary for the
Company’s growth and is adapting to
changing industry dynamics. This 70-
store division, characterized by a high
quality product line and high service
standards, represents a significant share
of the temporary furniture rental market
in the United States, ranking as the sec-
ond largest provider in the industry.
Traditionally, the rent-to-rent division
has served residential and business
customers (typically students, military
personnel, entrepreneurs starting new
businesses, major corporations with
temporary rental needs). Corporate bus-
iness (e.g. relocations) now represents the
majority of the rent-to-rent revenues.
Residential furniture represents nearly
two-thirds of the business and office
furniture, electronics and appliances the
remainder. Aaron attempts to meet
the needs of each customer category
offering flexible options of renting, pur-
chasing, or lease ownership. In addition
to in-office consultation and an array of
new products, Aaron’s customers also
have the option of purchasing previous-
ly rented furniture. Aaron’s leverages
the overhead of the rent-to-rent stores
by using those locations as clearance
centers for rental return merchandise.
Aaron has long been among the leaders
in rentals of La-Z-Boy furniture and
other popular brands of consumer prod-
ucts. The MacTavish Furniture Indus-
tries division produces stylish, quality
furniture to meet the Company’s needs.
Customers may select big-screen televi-
sions and personal computers as well as
living room, dining room, and bedroom
furnishings and accessories. Quality,
style, and selection drive the product
offerings. Aaron offers special house-
wares and linen rental programs to
provide a complete, one-stop shopping
experience.
The reputation of Aaron Rents as a
leader in quality products and services
has been built over nearly 50 years,
customer-by-customer, order-by-order.
A key factor in this reputation is the
commitment to first-rate service, includ-
ing: next day delivery of in-stock
merchandise; the replacement without
charge of any furniture that the cus-
tomer considers to be unsatisfactory
RENT-TO-RENT RENTAL REVENUES
RENT-TO-RENT:
DIGGING IN FOR GROWTH
Rental Furniture 62%
Office Furniture 30%
Electronics and Appliances 8%