Aarons 2003 Annual Report Download - page 15

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13
Aaron’s vertical integration and volume
purchasing are competitive advantages
and key factors in assuring timely
delivery of merchandise to customers. Unique
in its industry, Aaron’s produces the majority of
the furniture for its stores at the ten MacTavish
facilities comprising the Company’s manufac-
turing division, creating cost benefits that are
passed on to customers. Vertical integration
also allows the Company to control design and
quality, ensuring the functionality and durability
required for multiple rentals. During 2003,
MacTavish produced more than $60 million
in furniture, accessories and bedding at cost,
ranking this division among the top furniture
manufacturers in the United States.
Supporting this manufacturing capability is a
network of distribution centers, a dedicated store
service system unmatched by any competitor.
Twelve distribution centers are located in
key regions of the country, enabling stores
MacTavish Furniture
Industries and Distribution Centers
Stocking the Stores
to provide same-day or next-day delivery, another
competitive edge. The Magnolia, Mississippi
distribution center is the Company’s newest,
having opened in early 2004. The Company
expects to open several more distribution centers
in 2004 to accommodate expected store growth.