Aarons 2009 Annual Report Download - page 15

grated into motorsports television broadcasts and is a fixture
at store openings, corporate gatherings and public events and
has been the basis for a variety of promotional activities. Over
200,000 fans attended the Aaron’s 499 and Aaron’s 312 races
during the Aaron’s Dream Weekend at Talladega Superspeed-
way. Those races were some of the most-watched television
events in all of sports in 2009. The NASCAR theme is woven
into all aspects of operations and connects Aaron’s from the
racetrack to the showroom floor. The Company’s sports part-
nerships, together with a targeted media approach, increase
the exposure of the Aaron’s brand and reach more than 55
million consumers every year.
In addition to sports sponsorships, the Company has an active
direct marketing program with more than 28 million circulars
delivered each month. Aaron’s in-house advertising agency
produces television and radio ads as well as print material.
Thanks to the success of marketing and branding efforts, Aar-
on’s has become known as a home furnishings and electronics
destination for millions of consumers.
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The MacTavish Furniture Industries division operates 11 facilities
in five states. Most production is shipped to Company-operated
and franchised stores. The division manufactured approximately
$72 million at cost of furniture and bedding in 2009. We believe
the ability to control quality, durability, styling, cost and supply
through Company-operated manufacturing facilities is a dis-
tinct competitive advantage. In addition to producing high-
quality upholstered furniture and bedding, MacTavish is a key
employer in the communities where plants are located.
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While sales and lease ownership is the engine of corporate
growth, at the end of 2009 the Company also operated 15
Aaron’s Office Furniture stores. In 2008, the Company sold
most of the assets of its legacy business, the Aaron’s Corporate
Furnishings division, and retained the current Aaron’s Office
Furniture stores. The office furniture stores have struggled and
the Company is making changes that we expect will improve
both revenue and overall financial performance. These opera-
tions, however, are closely tied to general economic conditions
and significant improvement is not expected until economic
conditions improve. The RIMCO stores, the custom wheels and
tires business, have also failed to meet expectations; however,
some recent improvements should bode well for stronger
future results.
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Aaron’s success has not escaped media attention. The Com-
pany has received substantial national media exposure during
the past year. Fortune Magazine featured Aaron’s successful
model and why its business is looking up in a down economy.
The Company was recognized by U.S. News & World Report
in its study of more than 140 retailers with substantial sales,
looking for consistency of success and growth as particularly
important factors. Aaron’s was named one of the 10 best
retailers in this study.
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Historically, Aaron’s has been active in the communities served
by its stores. Through ACORP (Aaron’s Community Outreach
Program), Aaron’s associates have volunteered thousands of
hours in community service projects in cities and towns across
the U.S. and Canada and have donated more than $6.8 million
in goods and services.
The Company has become active in the Wounded Warrior pro-
gram and was recently presented the “Humanitarian of the
Year Award” by the United States Armed Forces Foundation.
All associates wear a red Aaron’s shirt on Fridays in tribute to
the men and women serving in the military.
The Company responded to the catastrophic earthquake in
Haiti with the single largest donation in corporate history. Led
by a franchisee’s efforts, the Company sent two solar-powered
generators to Haiti which will provide enough power to keep
two medical centers and 34 treatment tents in operation.
These generators were quickly put into service, filling a critical
need in a badly damaged country.
Through ACORP, Aaron’s continues to serve the communities
where it has a presence.
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Aaron’s management team is the best in the business. Most
key executives have been with the Company more than 20
years — and many executives have even been with Aaron’s for
more than 30 years. This management team and the many
Aaron’s associates are poised and ready to continue to deliver
good news in the years to come.
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