Leading rent-to-own operator, Aaron's Inc. (AAN), announced the opening of a new store in Bronx, New York, in sync with its aggressive growth trend. This marks the opening of the company’s 2,000th store. Moreover, the company has managed to successfully expand its network of stores by 345, adding about 2,200 jobs and posting solid quarterly results, over the past three years.
Looking ahead, the company expects this store expansion trend to continue, with more stores expected to come up in markets all over the U.S. Further, the company has plans to strengthen its footprint and foster economic development in the New York market by increasing its store count as well as providing new job and partnership opportunities in the region.
Aaron’s is a rent-to-own operator in the United States, and has a low price provider strategy. The company is involved in rental and specialty retailing of consumer electronics, residential and office furniture, household appliances, and accessories. The company competes directly with Rent-A-Center Inc. (RCII).
Currently, Aaron's has a customer base of over 1.6 million throughout the U.S. and Canada. The company offers its customers low monthly payments on a lease-to-own option and no credit checks on everyday brand name necessities such as refrigerators, computers, beds and televisions.
Moreover, Aaron’s leverages an extensive network of stores to effectively penetrate into its target markets, which in turn, facilitates the company to generate healthy sales and gain a competitive advantage over its rivals. The company’s total store count as of September 28, 2012 was 2,048 stores, including 2,000 company-operated and franchised stores in 48 states and Canada.
Currently, Aaron’s holds a Zacks #4 Rank, implying a short-term Sell rating on the stock. However, the company maintains a long-term Neutral recommendation on the stock.
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