), the largest rent-to-own operator in the U.S, announced the
opening of a new store in Seymour, Indiana.
The move was in line with 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 competitive advantage over its
) and Advance America.
The company, through its latest store, will offer furnishings,
electrical devices, electronics and computers. With the inclusion
of this new store, Rent-A-Center will conduct operations through
96 locations in Indiana.
The residents of the region will now have an additional option
of purchasing goods with flexible payment options (freedom to pay
weekly, biweekly or monthly). Moreover, the company offers a
lifetime recall service, which facilitates its customers to
re-rent the same or a comparable item and receive payments.
During the recently concluded quarter, the company opened 11
new Core U.S. locations, acquired 2 stores and closed 3 stores (2
stores consolidated with existing locations and 1 location
closed). The company also opened 100 RAC Acceptance stores and
closed 29 stores (consolidated with existing locations).
Sixteen international locations were opened and 1 store was
shuttered (consolidated with existing locations) during the
quarter, bringing the count to 114 stores. ColorTyme, which is a
wholly owned subsidiary of Rent-A-Center, added 5 new locations
and closed 4 stores.
For 2012, management plans to open approximately 35 domestic
rent-to-own stores. Through the year, the company targets to open
40 rent-to-own locations in Mexico and 6 in Canada. Moreover, the
company aims at 300 domestic RAC Acceptance kiosk additions.
Currently, we have a long-term Neutral recommendation on the
stock. Moreover, the company has a Zacks #3 Rank, which
translates into a short-term Hold rating.
AARONS INC (AAN): Free Stock Analysis Report
RENT-A-CENTER (RCII): Free Stock Analysis
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