Aarons 2001 Annual Report Download - page 9

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During 2001 Aaron’s Sales & Lease Ownership stores were added at a rate of almost one every three days —
a total of 101 additional Company-operated stores. At year-end the division had 573 stores across the United
States and in Puerto Rico, a growth rate of 26% in store count. This came on the heels of a 24% increase in
2000 as Aaron’s sharply accelerated its expansion via the acquisition of the large number of store real estate
leases. Many of these locations are in markets where the Company either enjoys a strong presence or has targeted
the market for expansion, thus generating immediate benefits from the favorable demographics of those markets.
Aaron’s reaches its customer base with the innovative “Dream Products” including highly popular big-screen
televisions, stainless steel refrigerators, leather upholstery and leading brands of washers and dryers as well as
professionally designed and coordinated furniture suites produced by the Company’s own manufacturing division
and top national manufacturers.
The marketing program is built around the “Drive Dreams Home” sponsorship of NASCAR championship
racing serving the prime audience for Aaron’s products. Carrying out this theme is the #99 NASCAR Busch Grand
National Dream Machine driven by Michael Waltrip and Kerry Earnhardt. The program, which has generated
extremely strong response, began with Aaron’s title sponsorship of the NASCAR Busch Grand National Car Race
at the Atlanta Motor Speedway. Running under the banner of “Aaron’s 312,” this nationally televised event plays
off the three reasons to shop at Aaron’s: 1) everyone is pre-approved, 2) the low price guarantee, and 3) you can
own it in as little as 12 months.
Other elements of the marketing program include sponsorship of the Atlanta Braves and other sports events.
Aaron’s also effectively uses direct-mail advertising with more than 12 million flyers mailed monthly to homes in
the market areas served by the stores.
Aaron’s has also gained strong acceptance from its customer base for personal computers, a product line
expanded in 2000. In addition, Aaron’s markets Dell and Hewlett Packard products to gain a larger share of
the market.
The Aaron’s concept offers major advantages through the vertical integration of Aaron Rents and its volume
purchasing program, key factors in assuring timely delivery of merchandise to customers. Unique in its industry,
Aaron’s produces much of the furniture for its stores at the 11 facilities of its manufacturing division, MacTavish
Furniture Industries, which provides cost benefits that are passed on to customers. Aaron’s also relies on seven
distribution centers located in key regions of the country, enabling stores to provide same-day or next-day
delivery, which provides a competitive edge.
The Company has also initiated a program to provide a uniform customer experience regardless of the store
location or ownership. Standardizing operational procedures throughout the system is a primary focus of the
Aaron’s University program. To facilitate this effort, Aaron’s has instituted a 13-course curriculum for Company
and franchise managers.
Aaron’s Sales & Lease Ownership offers its “Dream Products” on the Internet at www.shopaarons.com.