Aaron's (AAN) Solidifies GenNext Store Fleet With Latest Opening
The Aaron's Company, Inc. AAN, a prominent leader in the realm of technology-enabled lease-to-own and retail purchase solutions, has been focused on undertaking growth via expansion. In a strategic move to solidify its market presence, the company has officially declared the opening of its latest inclusion to the range of Aaron's GenNext stores.
This latest venture has found its home in Grandview, MO, a vibrant southern suburb nested within the greater Kansas City area. The company is likely to penetrate deeper into the thriving Kansas City market by choosing Grandview as a pivotal location for the GenNext store.
At the core of the GenNext initiative lies a comprehensive overhaul of the traditional in-store experience. These reimagined retail spaces feature amplified showrooms and ingeniously re-engineered layouts, complemented by refreshed and vibrant signage. Patrons can explore an expanded array of products that cater to diverse preferences.
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This transformative journey is further elevated by seamless technology-enabled shopping and checkout processes, all meticulously designed to encapsulate a paradigm shift in the shopping experience.
The GenNext program is multifaceted, involving the revitalization of existing stores and the strategic establishment of new retail havens. Having set its wheels in motion in 2018, this forward-looking initiative has yielded remarkable results. Year 2023 has witnessed the successful conversion or establishment of 23 GenNext stores, culminating in a staggering number of 234 company-operated GenNext stores.
What’s More?
The GenNext store strategy serves as a prominent illustration, consistently generating substantial financial benefits through the transformation of the customer experience within the physical stores and the redefinition of the operational model. At the end of the second quarter, these stores accounted for approximately 29% of lease revenues in retail sales. That compares to just more than 17% in the prior-year quarter.
Lease originations within GenNext stores, which have been operational for less than a year, have maintained a growth trajectory, surpassing the legacy store average by more than 20 percentage points. This remarkable revenue performance underscores the distinct proficiency of the GenNext stores, positioning them advantageously in comparison to the traditional store setup.
Notably, Aaron's has set a goal of reaching 50 GenNext stores by the end of the year, and it is currently making strides to stay on course and achieve this objective.
Shares of this Zacks Rank #3 (Hold) company have rallied 8.8% in the past three months against the industry’s decline of 1.5%.
Three Solid Picks
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The Zacks Consensus Estimate for SKX’s current financial-year sales and EPS suggests growth of 8.3% and 39.5%, respectively, from the year-ago reported numbers.
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