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Company Description

Contact Info

5501 Headquarters Drive

Plano, TX 75024

United States

Phone: 972-801-1100


Rent-A-Center, Inc. operates as a rent-to-own operator in North America. The company focuses on providing the opportunity to obtain ownership of products, such as consumer electronics, appliances, computers (including tablets), smartphones, and furniture (including accessories), under flexible rental purchase agreements with no long-term obligation. Segments The company’s segments include Core U.S., Acceptance Now, Mexico, and Franchising. Core U.S. As of December 31, 2015, this segment operated 2,672 company-owned stores in the United States, Canada and Puerto Rico, including 45 retail installment sales stores under the names Get It Now and Home Choice. The company routinely evaluates the markets in which it operates and would close, sell or merge underperforming stores. Acceptance Now This 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 could be introduced to an in-store Acceptance Now representative who explains an alternative transaction for acquiring the use and ownership of the merchandise. The company occupies the space without charge by agreement with each retailer. The company relies on its third-party retail partners to deliver merchandise rented by the customer. Such third-party retail partners typically charge us a fee for delivery, which it passes on to the customer. As of December 31, 2015, the company operated 1,444 staffed kiosk locations inside furniture and electronics retailers located in 40 states and Puerto Rico, and 532 virtual (direct) locations. Mexico This segment consists of its company-owned rent-to-own stores in Mexico. As of December 31, 2015, the company operated 143 stores in this segment. Franchising This segment uses Rent-A-Center's, ColorTyme's or RimTyme's trade names, service marks, trademarks and logos, and operates under distinctive operating procedures and standards. As of December 31, 2015, this segment franchised 227 stores in 31 states operating under the Rent-A-Center (149 stores), ColorTyme (40 stores) and RimTyme (38 stores) names. These rent-to-own stores primarily offer durable products, such as consumer electronics, appliances, computers, furniture and accessories, wheels and tires. Rent-A-Center Operations Product Selection The company’s 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 the company’s stores include high definition televisions, home theater systems, video game consoles and stereos. Appliances include refrigerators, freezers, washing machines, dryers, and ranges. It offers desktop, laptop, tablet computers and smartphones. The company’s furniture products include dining room, living room and bedroom furniture featuring various styles, materials and colors. Accessories include lamps and tables and are typically rented as part of a package of items, such as a room of furniture. Showroom displays enable customers to visualize how the product would look in their homes and provide a showcase for accessories. Acceptance Now locations offer the merchandise available for sale at the applicable third-party retailer, primarily furniture and accessories, consumer electronics and appliances. 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. Strategy The company’s strategy includes the following elements: flexible labor model; pricing and promotions; sourcing and distribution; development of Virtual Acceptance Now solutions; and technology investments. Suppliers In 2015, approximately 11% of the company’s merchandise purchases were attributable to Ashley Furniture Industries. Trademarks The company owns various trademarks and service marks, including Rent-A-Center and RAC Worry-Free Guarantee that are used in connection with its operations and has been registered with the United States Patent and Trademark Office. Franchising licenses the use of the Rent-A-Center and ColorTyme trademarks and service marks to its franchisees under the franchise agreement. Franchising owns various trademarks and service marks, including ColorTyme and RimTyme that are used in connection with its operations and has been registered with the United States Patent and Trademark office. Seasonality The company’s revenue mix is moderately seasonal, with the first quarter of each fiscal year (year ended December 31, 2015) generally providing higher merchandise sales than any other quarter during a fiscal year. History Rent-A-Center, Inc. was founded in 1986. The company was incorporated in Delaware in 1986.


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