Rent-A-Center Inc
. (
RCII
), the largest rent-to-own operator in the U.S, leverages an
extensive network of stores to penetrate into its target markets,
which facilitates the company to generate healthy sales and gain
an advantage over its competitors.
Following its rationale, Rent-A-Center, which competes with
Aaron's Inc
. (
AAN
) and Advance America, recently announced the opening of its new
store in Salinas, California.
The company, through its latest stores will offer luxury
furnishings, electrical devices, electronics and computers to the
residents of this region. With the inclusion of this new store,
Rent-A-Center now operates through 153 locations in
California.
The residents of the region will now have an additional option
of purchasing goods with flexible payment options, giving them
the 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.
Moreover, 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.
Going forward, the company remains optimistic about its future
growth as it opens stores in international markets and
accelerates the rollout of RAC Acceptance kiosks.
Management plans to open approximately 35 domestic rent-to-own
stores for 2012. 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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