Aarons 2002 Annual Report Download - page 14

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12
regardless of the reason; and the right
to return furniture with full refund
during the first week after delivery.
Aaron Rents stores also offer competitive
prices as a result of the cost advantages
of the Company’s own manufacturing
resources and on-premises warehousing.
Over the past fifteen years, the residen-
tial business has become more of a
corporate relocation business as con-
sumers now have more financial options
(for example, rent-to-own). The corpo-
rate relocation business is served by the
rent-to-rent industry, long-term stay
hotels and by furnished apartments.
Responding to industry and economic
changes, the rent-to-rent division has
taken steps to consolidate operations
and reduce expenses while focusing on
marketing opportunities and positioning
to benefit from the future economic
recovery.
The mission of MacTavish
Furniture Industries, Aaron’s
manufacturing arm, is to support
the growth plan of the Company’s
stores, both Company-operated and
franchised. Control over a significant
portion of the Company’s product
sourcing is a competitive advantage
allowing Aaron’s to provide same-day or
next-day delivery of orders, the key to
success in the rental, sales, and lease
ownership business. Vertical integration
also allows the Company to control
design and quality as functionality and
durability are key requirements for
multiple rentals.
MacTavish produces full lines of fur-
niture, accessories and bedding at 10
facilities in four states. Supporting this
manufacturing capability is an expand-
ing network of distribution centers, a
dedicated service system for our stores
unmatched by any competitor. During
the past year MacTavish produced
more than $55 million in furniture,
accessories, and bedding at cost, ranking
this division among the top furniture
MACTAVISH FURNITURE INDUSTRIES AND DISTRIBUTION CENTERS:
BUILDING FOR THE FUTURE
manufacturers in the United States.
This represented a 17% increase in pro-
duction from 2001 levels.
IN 2002, THE COMPANY OPENED A NEW
DISTRIBUTION CENTER IN PHOENIX,
ARIZONA. AARON’S NOW OPERATES
11 DISTRIBUTION CENTERS, ALL WITHIN
250 MILES OF A STORE. AARON HAS THE
DISTRIBUTION CAPABILITY TO DELIVER
CUSTOMER ORDERS SAME-DAY OR
NEXT-DAY DUE TO THIS EFFICIENT
DISTRIBUTION NETWORK.