Aarons 2007 Annual Report Download - page 12

Customer Proximity to Store
average of approximately 25%. At the end of 2007,
we had over 610,000 customers of Company-operated
stores, and an additional 318,000 customers were
being served by franchised stores.
Over the past five years, we have developed a
standard freestanding store, approximately 9,000
square feet with an attractively merchandised sales
floor and uniform color palette and signage, which
is substantially larger than the stores of competitors.
We offer room packages that combine furniture
and accessories, all available at affordable monthly
lease payments. Electronics have been an excellent
product category for quite a few years, and exciting
new products have been driving demand. The phase-
out of analog television signals should continue to
spur demand for large-screen digital televisions. Our
computer leasing business continues to grow with
laptops becoming a popular product. Computers
now represent 17% of our product mix. Our national
brands are an additional assurance of quality.
Our stores are open six days a week and can be
operated with less than 10 employees. Sixteen
regional fulfillment centers enable the Company to
minimize inventory at the store level while making
possible same or next-day delivery service.
A typical urban store will draw customers from up to
a 10-mile radius, while rural stores often draw from
up to 60 miles. Customers of rural stores represent
approximately 40% of Company customers and sub-
urban customers another 40%, with urban customers
the remainder. Urban customers tend to be renters in
densely populated metropolitan areas and are younger
The Aaron’s Dream Weekend at Talladega Superspeedway is our premier event partnership featuring the Aaron’s
499 NASCAR Sprint Cup Series Race and the Aaron’s 312 NASCAR Nationwide Series Race, both nationally
televised races.
Customer Groups
5 miles
or less
10%
20+ miles
3%
5 – 8
miles
31%
8 – 10
miles
19%
10 –15
miles
29%
15 – 20
miles
8%
Suburban
40%
Rural
40%
Urban
20%
10