Aarons 2002 Annual Report Download - page 7

5
Aaron’s Sales & Lease Ownership
has created a new form of spe-
cialty retailing which combines
the best features of rent-to-own and the
home furnishing industry’s traditional
approach to credit retailing. Aaron’s
offers a fast, easy and convenient shop-
ping experience, a broad range of top
brand-name products, rapid delivery,
and low-price guarantees leading to
the option of ownership. Through
the distinctive Aaron’s Sales & Lease
Ownership concept, the Company can
reach a broader market of lease owner-
ship, credit retail and rental customers.
Aaron’s offers quality products at fair
prices and sets the standard of customer
service for the rent-to-own industry.
This Aaron’s concept is well-positioned
to address the market vacuum created
by the liquidation of several major credit
furniture retailers over the past few
years. These bankruptcies, in aggregate,
resulted in the closure of more than
2,000 stores with an estimated $3.5
billion in annual sales volume. The
market historically served by many of
these stores can be effectively addressed
by Aaron’s. To capitalize on this oppor-
tunity, Aaron’s acquired more than 80
store locations from Heilig-Meyers
Company in 2001 and those locations,
now converted to Aaron’s Sales & Lease
Ownership stores, are continuing to
ramp up in revenues and earnings.
These locations represent a significant
expansion in market share and leverage
Aaron’s advertising, purchasing and
distribution capabilities.
AARON’S SALES & LEASE OWNERSHIP:
TAKING ROOT AND GROWING
The Aaron’s Sales & Lease ownership
program allows Aaron’s to service a
slightly higher economic profile cus-
tomer than the typical rent-to-own
consumer, illustrated by the fact that
roughly 40% of our customers pay by
either check or credit card whereas the
typical rent-to-own customer pays in
cash. Aaron’s also has set a standard of