Aarons 2005 Annual Report Download - page 7

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5
alternatives. The new business model
enabled the Company to enter new
markets, and the first store outside
of Atlanta was opened in Baltimore
in 1967.
By the 15th year of operations, Aaron
Rents had annual revenues in excess of
$2 million and an inventory investment
of over $3 million.
Sales and Lease Ownership
Bythe late 1980s, the consumer
marketplace was again undergoing
significant change. Furniture
retailing was increasingly becoming
the domain of large national and
regional chains with in-house financing capability.
Furniture rental was becoming more of a corporate relo-
cation business with furnished apartments emerging as
significant competition. Opportunities for growth in the
short-term furniture rental business were slowing. In
1987, Aaron Rents introduced the concept of sales and
lease ownership in existing rental stores and subsequently
opened stand-alone stores. Aaron’s Sales & Lease
Ownership is now the engine of growth. Sales and lease
ownership is a hybrid of retail and rental, offering credit-
constrained consumers an attractive vehicle to acquire
home furnishings and electronics. Key features of the
Company’ssales and lease ownership concept include
•Monthly or semimonthly payments
• A broad range of quality brand-name products
The 1960s
Man first walked on the moon
and the Beatles first set foot
in America. The compact audio
cassette was introduced and the
first communications satellite
launched. Sean Connery starred
in the first James Bond movie,
“Dr. No.” The Civil Rights Movement
dramatically changed American
society,and Aaron Rents
supplied the tents for
the Selma march.
1965 –Company provides
4 tents for civil rights
march from Selma to
Montgomery, Alabama
1967 –Store opens
in Baltimore, the first
market outside of Atlanta
•Same- or next-day delivery, free of charge
•No application fees, no balloon payments
•No long-term obligation
•Flexible payment options (cash, check, credit
or debit card)
•Lower total cost than rent-to-own competitors
•Repair or replacement guarantee
The Aaron’s Sales & Lease Ownership concept is based
on 12-, 18- or 24-month lease payment options. A “cash
and carry” price is also displayed and is competitive
within the discount retail marketplace. Aaron’s also
offers a 90-day “same as cash” option for cash purchases.
The average customer currently has a monthly payment
of over $145. For the customer who takes ownership of