), the largest rent-to-own operator in the U.S, announced the
opening of a new store in Bellmead, Texas.
The company, through its latest store, will offer furniture,
appliances, electronics and computers. With the inclusion of this
new store, Rent-A-Center will conduct operations through 279
locations in Texas.
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 competitive advantage over its
) and Advance America.
During the recently concluded quarter, Rent-A-Center opened 12
new Core U.S. locations and consolidated 9 stores with existing
locations bringing the total store count to 2,986. The company
also opened 103 RAC Acceptance stores and consolidated 19 stores
with existing locations, resulting in 966 stores.
Nine international locations were opened and 15 stores were
shuttered during the quarter, bringing the count to 108 stores.
ColorTyme, which is a wholly owned subsidiary of Rent-A-Center,
added 7 new locations and consolidated 3 stores with existing
locations, taking the total store count to 224.
For 2013, management plans to open approximately 60
rent-to-own locations in Mexico. Furthermore, the company aims at
about 425 domestic RAC Acceptance kiosk additions.
Apart from store expansions, the company is taking prudent
steps to optimize rental merchandise levels in accordance with
sales trends. Rent-A-Center implemented a centralized inventory
management system, including automated merchandise replenishment.
Moreover, a new centralized purchasing system allows better
management of rental merchandise.
Despite these measures, currently, shares of Rent-A-Center
hold a Zacks Rank #4 (Sell), following the company's soft
fourth-quarter 2012 earnings.
However, until any further upward revision in Rent-A-Center's
rating, other stocks in the finance-leasing universe worth
CorEnergy Infrastructure Trust
Marlin Business Services Corp
) both hold a Zacks Rank #2 (Buy).
AARONS INC (AAN): Free Stock Analysis Report
CORENERGY INFRA (CORR): ETF Research Reports
MARLIN BUS SVCS (MRLN): Free Stock Analysis
RENT-A-CENTER (RCII): Free Stock Analysis
To read this article on Zacks.com click here.