Aarons 2006 Annual Report Download - page 7

5
Ken Butler
President, Aaron’s Sales & Lease Ownership Division
Years with Company: 33
Our growth goal of reaching approximately 1,600 stores by the end of 2007 sounds really aggressive,
but we have been working on systems, controls and
procedures that make this growth possible. Plus, we have
broken down the big goal into manageable units. For
example, we have nine operating vice presidents, each of
whom is responsible for opening 15-16 stores during 2007.
This is manageable growth, particularly with our team.
One of the keys to success is our depth of management
down to the regional level. We identify and cultivate
management talent. An ambitious person can make a
career at Aaron’s, and we are now finding that quality
people seek us out. We have worked hard on every aspect
of our business from site selection to store format. Some of
the refinements in our business model have led to a level
of standardization that makes growth somewhat easier.
Another key to success is that we are always adapting.
Over time, we have shifted our locations from dense urban
markets to suburbs and small towns. We recognize that
there are budget-conscious consumers in every market.
We are attracting customers who might not have shopped
our stores 10 years ago, and some of our newer customers
can afford to spend more. We have worked hard to build a
brand image with our signage and storefronts and our more
welcoming interiors.
Historically, Aaron’s provided necessities to its customers
but we now offer a significantly broader array of products
and our customers have responded. Computers and large
televisions are almost considered necessities in many
households, and those products have certainly contributed
to our growth. We have also been experimenting with
offering customers rims and tires through our RIMCO stores.
Store Growth
0
300
900
1,500
600
1,200
2004 2005 20062002 2003
(number of stores)