) announced the opening of a store in Palatine, Illinois. The
company operates 104 outlets in the state.
The move reflects the company's strategic approach of
leveraging an extensive network of stores to effectively
penetrate into its target markets, which in turn facilitates it
to generate healthy sales and gain an advantage over its rivals,
) and Advance America.
During the recently concluded fourth quarter of 2013, this
rent-to-own operator in the U.S., opened 22 new Core U.S.
locations, acquired 35 stores, consolidated 7 stores with
existing locations and closed 32 outlets, bringing the total
store count to 2,992. The company also opened 91 Acceptance Now
stores, consolidated 13 stores with existing locations and closed
7 stores, resulting in 1,325 stores.
Only one international location was opened, bringing the count
to 169 stores. Rent-A-Center Franchising International, which is
a wholly owned subsidiary of Rent-A-Center, added 31 new
locations and closed 65 with the total store count remaining at
For 2014, management plans to open approximately 30
rent-to-own locations in Mexico. Moreover, the company aims at
about 100 domestic Acceptance Now kiosk additions.
Rent-A-Center offers consumer electronics, appliances and
furniture products under rental purchase schemes that allow
customers to own the merchandise upon completion of the rental
period. Due to continued tightening of the credit market,
customers see rent-to-own as a more flexible and viable option
compared to credit. However, the sluggish recovery and a fragile
job market may make customers reluctant to enter new
Currently, Rent-A-Center holds a Zacks Rank #5 (Strong Sell)
reflecting lower-than-expected results in the third and fourth
quarters of 2013, and a cautious outlook given the macroeconomic
headwinds that the company's Core U.S. segment is grappling
Not all stocks have such a discouraging Zacks Rank as
Rent-A-Center. Better-ranked stocks include
Horizon Technology Finance Corporation
Main Street Capital Corporation
), each holding a Zacks Rank #2 (Buy).
AARONS INC (AAN): Free Stock Analysis Report
HORIZON TECHNOL (HRZN): Free Stock Analysis
MAIN STREET CAP (MAIN): Free Stock Analysis
RENT-A-CENTER (RCII): Free Stock Analysis
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