Aarons 2005 Annual Report Download - page 10

8
The 1990s
Corporate Furnishings
The Company’s legacy business of the rent-to-rent
division, now called Aaron’s Corporate Furnishings,
remains a vital part of Company operations but with
acorporate rather than consumer focus. Historically,
this division serviced the temporary furniture needs of
consumers (for example, snowbirds, military families and
students) and corporate employee
relocations. Over time, the short-term
rental market changed significantly
with the advent of furnished apart-
ments and extended stay hotels.
Increasingly,this division serves
corporate customers, providing
temporary rentals related to new
business locations and temporary
employee postings or relocations.
This division rents office furniture
including wall panel systems, desks
and work stations as well as
residential furniture, electronics
and appliances out of 58 stores
located in 15 states.
1992 –First
franchised store
awarded and opened
The first reality television show was
introduced on MTV. Tiger Woods
won his first Masters Tournament
at 21, and Lance Armstrong won his
first Tour de France. The first cloned
animal, Dolly the sheep, was born.
1994 –Secondary
offering of 1.3 million
shares raises $14 million
Aaron Rents opened its 250th
store and hired the 2,000th
employee. The Company initiat-
ed a franchise program, launch-
ing a new avenue of growth,
and the stock was listed
on the New York
Stock Exchange.
Products
Atvarious times in its corporate history, Aaron Rents
has offered convention equipment, business equip-
ment, home health care products and other items.
For many years, residential and office furniture formed
the foundation of the product lineup, but consumer
demand has changed, and many new products for the
home have been introduced over the past 30 years.
In the early 1980s, the Company began to test electronic
products, which have continued to experience strong
growth. Electronics currently generate over 40% of
revenues. The product line has expanded to include
household appliances, accessories and specialty items
including lawn tractors and jewelry. Personal computers
wereadded to the product line in the late 1990s and
now generate over 13% of revenues in the
Aaron’sSales & Lease Ownership division.
Aaron’s offers nationally recognized brands
including GE, Maytag, Frigidaire, Simmons,
La-Z-Boy, Sony, Mitsubishi and Dell. The
Company is the largest vendor of RCA
widescreen TVs in the United States.
The Company’s
strategy is to identify
desirable products
that areeither
household essentials
(furniture and appli-
ances, for example)
or declining in price
and becoming more
affordable to a