Aaron's Inc. (AAN) recently acquired 8 stores owned and operated by Buzz's Lease Purchase & Sales, as part of its game plan of having 60 HomeSmart stores. The company plans to convert all the acquired stores to the HomeSmart format. The stores are in the business of providing weekly payment lease agreements for products similar to the ones in Aaron's Sales & Lease Ownership stores
In July this year the company acquired all 30 stores owned and operated by Crusader Rent to Own. These acquisitions were geared to expand Aaron's HomeSmart concept. Therefore, in the coming months, it will convert 29 Crusader stores into HomeSmart. Currently, the company has relatively few HomeSmart stores. The remaining store will be merged into an existing Aaron's store.
Earlier, in its fiscal 2011 guidance, the company targeted new store growth for both the company-operated and franchised stores in the range of 5% – 9%.
Headquartered in Houston, HomeSmart is a subsidiary of Aaron's and operates in the south and southwest regions of the United States. Stores under HomeSmart have plans such as weekly payment and six months interest free plans, which provide more flexibility and affordable purchasing options to the customers.
Buzz's Lease Purchase & Sales is a private company categorized under Rental Service-Stores and Yards. Buzz's Lease Purchase & Sales usually offer: Court Furniture Rentals, Essential Tables, Corporate Furniture Rental, Furniture Dolly Rental and Used Furniture Rental.
Aaron's is a rent-to-own operator in the United States and has a low price provider strategy. The company is involved in the rental and specialty retailing of consumer electronics, residential and office furniture, household appliances, and accessories. Currently, the company operates over 1,860 stores in 48 states of the United States and Canada.
Aaron's, which competes with Rent-A-Center Inc. (RCII), currently holds a Zacks #3 Rank, implying a short-term Hold rating on the stock. The company retains a long-term Neutral recommendation.
RENT-A-CENTER (RCII): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment