Aarons 2009 Annual Report Download - page 8
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•Nocreditapplications
•Noapplicationfees
•Noballoonpayments
•Lowercostofownership
•Flexiblepaymentoptions(cash,check,credit
and debit cards)
•Flexibleleaseterms
•Freesameornext-daydelivery
•Quality,brand-nameproducts
•Broadproductselectioninattractivestores
•Nolong-termnancialobligation
•Repairorreplacementguarantees
•55yearsofoutstandingservice
Aaron’s has grown into one of the largest specialty retail-
ers of furniture, consumer electronics and home appliances.
Compared to traditional credit retailers, the Aaron’s Sales &
Lease Ownership concept offers the consumer flexibility — they
can return leased merchandise with no further obligation.
A traditional credit sale creates a finite and defined finan-
cial obligation, but an Aaron’s lease ownership agreement
can provide customers with more flexible payment options.
Flexible lease terms (12, 18 or 24 months) allow consumers
to select the most appropriate payment plan for them. Lease
terms can be extended to make products available at lower
monthly payments.
In addition to attractive payment options, Aaron’s is distin-
guished by a commitment to customer service. Free same- or
next-day delivery is made possible by a network of 17 regional
fulfillment centers. Also, nationwide service centers provide
merchandise repair service.
At year-end, the Company had 829,000 corporate custom-
ers and 451,000 franchised customers, a 16% increase in
total customers over the number at the end of 2008. Our
target customer base, households with annual incomes
of $50,000 or less, is quite large. Same store revenues
for Company-operated stores increased more than 8% in
2009 compared to 2008. In addition, the customer count
for Company-operated stores has substantially exceeded
revenue gains on a same-store comparison for the past several
years. We believe Aaron’s is attracting a broader spectrum of
consumers than in the past and is expanding the market to
reach customers with higher income levels. Approximately
70% of Aaron’s customers are repeat customers. If a consumer
tries Aaron’s, that person is likely to become a loyal customer.
Aaron’s brings customers the products they want at prices
they can afford. With the Company’s superior buying power,
the best products are sourced at the best prices. The Company
offers national brands such as JVC, Mitsubishi, Philips, Sharp,
Dell, HP, Maytag, Frigidaire and many others. The long-term
trend in home electronics is price deflation which allows the
Company to continually offer new products and new catego-
ries at price points desirable to our customers. Over the past
few years, leasing of large screen and flat panel televisions has
become increasingly popular. In 2009, Aaron’s was one of the
largest purchasers of Mitsubishi televisions in America. Home
electronics currently represent approximately 37% of revenues
with furniture the second largest category at 30%.