Aarons 2003 Annual Report Download - page 14

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The rent-to-rent division of Aaron Rents,
the Company’s original line of business,
generates solid cash flow important to
the Company’s growth and continues to adapt
to changing industry dynamics. This division,
characterized by a broad, high-quality product
line and high service standards (for example,
consumers may submit rental applications
on-line), is the second largest operation in
the temporary furniture rental market in the
United States.
Traditionally, the rent-to-rent division has
served residential and business customers (e.g.
students, military personnel, new businesses,
major corporations with temporary rental needs).
Corporate business, consisting of residential
furniture for employee relocations and office
furniture, now represents the majority of divi-
sional revenues. Aaron’s meets the needs of each
customer category, offering flexible options of
renting, purchasing or lease ownership. 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. Aaron’s leverages
the overhead of the rent-to-rent stores by using
those locations as clearance centers for rental
return merchandise.
Customers may select from a broad 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 pro-
grams, 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 Rents has also long
been among the leaders in rentals of La-Z-Boy
furniture and other popular brands.
Rent-to-Rent
Refurbished and Renewed
The reputation of Aaron Rents as an industry
leader has been built over nearly 50 years,
customer by customer, order by order. A key
factor in this reputation is the commitment to
competitive prices, high-quality products and
first-rate service, including next-day delivery
of in-stock merchandise; replacement without
charge of any furniture the customer considers
unsatisfactory regardless of the reason; and the
right to return furniture for a full refund during
the first week after delivery.
Over the past 15 years, residential rentals have
become more of a corporate relocation business
as consumers now have additional financial
options (rent-to-own, for example). The corporate
relocation business is served by the rent-to-rent
industry, extended stay hotels (such as Residence
Inn and Suburban Lodges) and by furnished
apartments. In response, the rent-to-rent division
has taken steps to consolidate operations and
reduce expenses while focusing on marketing
opportunities. Aaron Rents is positioned to
benefit from improving economic trends.