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, furniture and accessories, under flexible rental purchase agreements with no long-term obligation. Segments The company operates in four segments: Core U.S., Acceptance Now, Mexico, and Franchising. Core U.S.: The Core U.S. segment stores offer merchandise from four basic product categories: consumer electronics, appliances, computers (including tablets and smartphones), furniture and accessories. In 2014, the company began to offer smartphones for rent in its Core U.S. stores, along with no-contract service plans. As of December 31, 2014, the company operated 2,824 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’. Acceptance Now: The 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 who explains an alternative transaction for acquiring the use and ownership of the merchandise. As of December 31, 2014, the company operated 1,406 kiosk locations inside furniture and electronics retailers located in 40 states and Puerto Rico. Mexico: The Mexico segment stores offer merchandise from four basic product categories: consumer electronics, appliances, computers (including tablets and smartphones), furniture and accessories. This segment consists of the company-owned rent-to-own stores in Mexico. As of December 31, 2014, the company operated 177 stores after adding 26 rent-to-own store locations in 2014. Franchising: The stores in the Franchising segment use Rent-A-Center's, ColorTyme's or RimTyme's trade names, service marks, trademarks and logos, and operate under distinctive operating procedures and standards. As of December 31, 2014, this segment franchised 187 stores in 30 states operating under the Rent-A-Center (106 stores), ColorTyme (50 stores) and RimTyme (31 stores) names. These rent-to-own stores primarily offer durable products, such as consumer electronics, appliances, computers, furniture and accessories, wheels and tires. Seasonality The company’s revenue mix is moderately seasonal, with the first quarter of each year providing higher merchandise sales than any other quarter during a year, primarily due to federal income tax refunds. The company tends to experience slower growth in the number of rental purchase agreements in the third quarter of each year when compared to other quarters throughout the year. 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 have been registered with the United States Patent and Trademark Office. In addition, the company has obtained trademark registrations in Canada, Mexico, and certain other foreign jurisdictions. The Franchising segment licenses the use of the Rent-A-Center and ColorTyme trademarks and service marks to its franchisees under the franchise agreement. The Franchising segment owns various trademarks and service marks, including ColorTyme and RimTyme. Suppliers The company’s suppliers include Vertex Wireless, LLC; Ashley Furniture Industries; and Whirlpool Corporation. 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. History Rent-A-Center, Inc. was founded in 1986. The company was incorporated in Delaware in 1986.
rent-a-center inc (RCII:NASDAQ GS)
5501 Headquarters Drive
Plano, TX 75024
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