To further strengthen its foothold in Canada,
) announced its plans to franchise Canadian Stores through
ColorTyme, a wholly owned subsidiary of Rent-A-Center.
The company stated that initially it will be franchising 18
Rent-A-Centre stores in Canada. The locations include Manitoba,
Alberta, Ontario and Toronto metropolitan area.
The move is 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.
During the recently concluded quarter, the largest rent-to-own
operator in the U.S, 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 added 7 new locations and consolidated 3 stores with
existing locations, taking the total store count to 225.
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
Electro Rent Corporation
), which hold a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2
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RENT-A-CENTER (RCII): Free Stock Analysis
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