Profile: Rent-A-Center Inc (RCII.OQ)
24 Jul 2017
Rent-A-Center, Inc., incorporated on November 26, 2002, is a rent-to-own operator in North America. The Company provides an opportunity to obtain ownership of products, such as consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories), under rental purchase agreements. The Company operates in four segments: Core U.S., Acceptance Now, Mexico and Franchising. The Company offers brands, such as LG, Samsung, Sony and Vizio home electronics; Frigidaire, General Electric, LG, Samsung and Whirlpool appliances; Acer, Apple, Asus, Samsung and Toshiba computers and/or tablets; LG and Samsung smartphones, and Ashley, Powell and Standard furniture. Its Core U.S. and Mexico stores generally offer merchandise from five basic product categories: consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories). Consumer electronic products offered by its stores include high definition televisions, home theater systems, video game consoles and stereos. Appliances include refrigerators, freezers, washing machines, dryers and ranges. The Company offers desktop, laptop, tablet computers and smartphones. Its furniture products include dining room, living room and bedroom furniture featuring a number of styles, materials and colors. Its accessories include lamps and tables, and are rented as part of a package of items, such as a complete room of furniture.
The Company's customers make payments on a weekly, semi-monthly or monthly basis in its stores, kiosks, online or by telephone. The Company provides any required service or repair without additional charge, except for damage in excess of normal wear and tear. Repair services are provided through its network of service centers. If the product cannot be repaired at the customer's residence, the Company provides a temporary replacement while the product is being repaired.
As of December 31, 2016, the Company operated over 2,463 Company-owned stores in the United States, Canada and Puerto Rico. Its stores included over 45 retail installment sales stores under the names, Get It Now and Home Choice, as of December 31, 2016.
The Company's Acceptance Now segment provides an on-site rent-to-own option at a third-party retailer's location. In the event a retail purchase credit application is declined, the customer can be introduced to an in-store Acceptance Now representative explaining an alternative transaction for acquiring the use and ownership of the merchandise. The Company relies on its third-party retail partners to deliver merchandise rented by the customer. Merchandise returned from Acceptance Now kiosk location is offered for rent at one of its Core U.S. rent-to-own stores. Each Acceptance Now kiosk location consists of an area with a computer, desk and chairs. As of December 31, 2016, the Company operated 1,431 staffed kiosk locations inside furniture and electronics retailers located in over 40 states and Puerto Rico, and 478 virtual (direct) locations.
The Company's Mexico segment consists of the Company-owned rent-to-own stores in Mexico. As of December 31, 2016, the Company operated 130 stores in this segment.
The stores in the Company's Franchising segment use Rent-A-Center's, ColorTyme's or RimTyme's trade names, service marks, trademarks and logos. Its Franchising segment engages in the sale of rental merchandise to its franchisees. Its franchisees, in turn, offer the merchandise to the general public for rent or purchase under a rent-to-own transaction. As of December 31, 2016, the Company's Franchising segment franchised 229 stores in 31 states operating under the Rent-A-Center (152 stores), ColorTyme (39 stores) and RimTyme (38 stores) names. Its rent-to-own stores primarily offer products, such as consumer electronics, appliances, computers, furniture and accessories, wheels and tires.
5501 Headquarters Dr
PLANO TX 75024-5837
Company Web Links
- Rent-A-Center shunned takeover interest from HIG, Lone Star: sources
- UPDATE 1-Rent-A-Center shunned takeover interest from HIG, Lone Star-sources
- Rent-A-Center shunned takeover interest from HIG, Lone Star-sources
- BRIEF-Engaged Capital issues statement in respect of Rent-A-Center
- BRIEF-Rent-A-Center says Vintage Capital Management made unsolicited proposal to buy 100 pct of stock of co for $15/shr