Aarons 2004 Annual Report Download - page 12

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The Rent-to-Rent Division of Aaron Rents, the
Company’s original line of business, generates
solid earnings and cash flow important to
the Company’s growth and continues to adapt to
changing industry dynamics. This division, with
58 stores in 14 states, offers customers a diverse,
high quality product line and high service standards.
Customers select from a diverse assortment of living
room, dining room and bedroom furnishings and
accessories, as well as big-screen televisions and
personal computers. Aaron Rents offers special
housewares and linen rental programs, offering
customers a complete, one-stop shopping experience.
The Company’s MacTavish Furniture Industries
Division manufactures the majority of the
Company’s wide range of rent-to-rent products,
but Aaron’s has also long been among the leaders
in rentals of La-Z-Boy furniture and other popular
brands. Aaron’s leverages the overhead of the rent-
to-rent stores by using those locations as clearance
centers for rental return merchandise.
Historically, the Rent-to-Rent Division served
residential and business customers (e.g. students,
military personnel, new businesses, and corporations
with temporary rental needs). Because a typical
rent-to-rent customer now has more options (e.g.
sales and lease ownership), the residential business
of the Rent-to-Rent Division is now largely tied to
corporate relocations, which are also serviced by
extended stay hotels and furnished apartments.
Rent-to-Rent
Fine-tuning the Formula
Corporate business (office furniture and residential
furniture for employee relocations) now represents
the majority of divisional revenues. To the corporate
market, Aaron’s is the “Source for Workplace
Solutions,” offering free in-office consultation and
short-term or special event rentals. Customers can
expect next-day delivery on a broad range of office
furnishings, including panel systems, and have the
option of purchasing previously rented furniture.
The reputation of Aaron Rents as an industry
leader has been built over 50 years, customer by
customer, order by order. Aaron Rents stakes its
corporate reputation on a commitment to com-
petitive prices, high-quality products and first-rate
service, including next-day delivery of in-stock
merchandise; the replacement without charge of
any furniture the customer considers unsatisfactory,
regardless of the reason; and the right of the
customer to return furniture for a full refund
during the first week after delivery.
After several years of industry contraction and
internal restructuring efforts, the Rent-to-Rent
Division performed well in 2004, and future
prospects are promising.