Aaron’s, Inc. operates as a specialty retailer of consumer electronics, computers, residential furniture, household appliances, and accessories. The company is engaged in the lease ownership, and lease and retail sale of various products, such as widescreen and LCD televisions, computers, tablets, living room, dining room and bedroom furniture, washers, dryers, and refrigerators. Its stores carry brands, such as Samsung, Frigidaire, Hewlett-Packard, LG, Maytag, Simmons, JVC, Sharp, and Magnavox. As of December 31, 2013, the company had 2,151 stores, consisted of 1,370 company-operated stores in 29 states and 781 independently-owned franchised stores in 47 states and Canada. The company owns or has rights to various trademarks and trade names used in its business, including Aaron’s, Aaron’s Sales & Lease Ownership, and Woodhaven Furniture Industries. Segments The company’s segments include Sales and Lease Ownership, HomeSmart, Franchise, and Manufacturing. Sales and Lease Ownership This segment provides household goods to lower to middle income consumers. The company’s customer base primarily includes consumers with limited access to traditional credit sources, such as bank financing, installment credit or credit cards. As of December 31, 2013, the company had 1,262 company-operated Aaron's Sales & Lease Ownership stores in 29 states. HomeSmart This segment serves customers who prefer the flexibility of weekly payments and renewals. This segment provides consumer goods that are similar to those available in its Aaron's Sales & Lease Ownership stores. As of December 31, 2013, the company had 81 company-operated HomeSmart stores in 11 states. Franchise This segment franchises the company’s Aaron's Sales & Lease Ownership and HomeSmart stores in markets where it has no plans to enter. Manufacturing This segment, Woodhaven Furniture Industries, is the major furniture lease company in the United States that manufactures its own furniture. All produced items are leased or sold through company-operated or franchised stores. This segment produces upholstered living-room furniture (including contemporary sofas, chairs and modular sofa and ottoman collections in various natural and synthetic fabrics) and bedding (including standard sizes of mattresses and box springs). This segment also provides replacement covers for various styles and fabrics of its upholstered furniture for use in reconditioning leased furniture that has been returned. This segment consists of five furniture manufacturing plants and nine bedding manufacturing facilities aggregating approximately 818,000 square feet of manufacturing capacity. Dispositions In January 2014, the company sold its 27 company-operated RIMCO stores and the rights to 5 franchised RIMCO stores. Strategies The company’s long-term strategies include opening additional company-operated sales and lease ownership stores; increasing its sales and lease ownership franchises; pursuing selective acquisitions in both new and existing sales and lease ownership markets; developing and expanding the HomeSmart weekly pay concept; and exploring international expansion. Seasonality The company’s revenue mix is moderately seasonal. The first quarter of each year (year ending December 2013) has higher revenues than any other quarter. This is primarily due to realizing the benefit of business that historically gradually increases in the fourth quarter as a result of the holiday season, as well as the receipt by its customers in the first quarter of federal and state income tax refunds. Government Regulation The company’s sales and lease ownership franchise program is subject to the Federal Trade Commission regulation and various state laws regulating the offer and sale of franchises. Competition The company’s major competitor includes Rent-A-Center, Inc. History Aaron’s, Inc. was founded in 1955. The company was incorporated in 1962 as a Georgia corporation.
aaron's inc (AAN:New York)
309 East Paces Ferry Road, NE
Atlanta, GA 30305
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