Profile: Aaron's Inc (AAN.N)
3 Dec 2013
Aaron’s, Inc. (Aaron’s), incorporated in 1962, is a specialty retailer of consumer electronics, computers, residential furniture, household appliances and accessories. Aaron’s is engaged in the lease ownership, lease and retail sale of a variety of products, such as widescreen and liquid crystal display (LCD) televisions, computers, living room, dining room and bedroom furniture, washers, dryers and refrigerators. It carries brands, such as JVC, Mitsubishi, Philips, Panasonic, Sony, Dell, Hewlett-Packard, Simmons, Frigidaire, and Sharp. It operates in four segments: Sales and Lease Ownership, Franchise, HomeSmart, and Manufacturing. It focuses on expanding its sales and lease ownership business, which includes Aaron’s Sales & Lease Ownership and HomeSmart stores. The Company acquired the lease agreements, merchandise and assets of 38 Aaron’s Sales & Lease Ownership stores and 47 HomeSmart stores, during the fiscal year ended December 31, 2011. In 2011, it sold 10 of its sales and lease ownership stores to franchisees and 15 to a third party operators. It added a net of 82 Company-operated sales and lease ownership stores in 2011.
The Company’s major operating divisions: Aaron’s Sales & Lease Ownership division, the HomeSmart division and the Woodhaven Furniture Industries division, which supplies the majority of the upholstered furniture and bedding leased and sold in its stores. As of December 31, 2011, Aaron’s had 1,945 stores, consisted of 1,232 Company-operated stores in 28 states and 713 independently-owned franchised stores in 48 states and Canada. The Aaron’s Sales & Lease Ownership division offers electronics, residential furniture, appliances and computers to consumers primarily on a monthly payment basis with no credit requirements. The HomeSmart division offers electronics, residential furniture, appliances and consumers primarily on a weekly payment basis with no credit requirement. The Company’s franchise operation sells and supports franchisees of its sales and lease ownership concept. The Manufacturing segment manufactures upholstered furniture and bedding predominantly for use by Company-operated and franchised stores.
Aaron’s Sales & Lease Ownership
The Company’s Aaron’s Sales & Lease Ownership division focuses on providing household goods to lower to middle income consumers who have limited or no access to traditional credit sources, such as bank financing, installment credit or credit cards. As of December 31, 2011, it had 1,160 Company-operated sales and lease ownership stores in 28 states. As of December 31, 2011, Aaron’s Sales & Lease Ownership division included 16 Company-operated and six franchised RIMCO stores, its wheels, tires and accessories sales and lease ownership concept.
Aaron’s, Inc's HomeSmart division serves customers primarily through weekly payment lease agreements with products similar to those leased through its Aaron’s Sales & Lease Ownership stores. As of December 31, 2011, the Company had 71 Company-operated HomeSmart stores in 11 states. The HomeSmart store layout is a combination showroom and warehouse of 4,000 to 6,000 square feet, with an average of approximately 5,000 square feet.
Woodhaven Furniture Industries
Aaron’s is the furniture lease company in the United States that manufactures its own furniture. Woodhaven Furniture Industries’ entire production is leased and sold through its stores. The division has five furniture manufacturing plants and nine bedding manufacturing facilities, totaling approximately 867,000 square feet in the aggregate, that supply the majority of its upholstered furniture and bedding. Its Woodhaven Furniture Industries division manufactures upholstered living-room furniture, including contemporary sofas, sofa beds, chairs and modular sofa and ottoman collections in a variety of natural and synthetic fabric, and bedding, including standard sizes of mattresses and box springs. Woodhaven also provides replacement covers of all styles and fabrics of its upholstered furniture for use in reconditioning lease return furniture.
Aaron’s Office Furniture
The Company closed 11 of the Aaron’s Office Furniture stores since June 2010. It has one remaining store open to liquidate merchandise.
The Company competes with Rent-A-Center, Inc.
309 E. PACES FERRY ROAD, N.E.
ATLANTA GA 30305-2377