Maya Chen
Rent-A-Center is an American public furniture and electronics company that operates on a rent-to-own business model. As of 2014, the company operates approximately 2,972 company-owned stores in the United States, Puerto Rico, and Mexico, with the majority of its stores located in the US. In July 2015, Rent-A-Center sold several Ontario locations to EasyHome for $3.4 million, which included a three-year non-compete agreement.
| Characteristics | Values |
|---|---|
| Number of company-owned stores | 2,972 |
| Locations | United States, Puerto Rico, Mexico |
| Percentage of the rent-to-own market in the United States | 35% |
| Number of retail installment stores | 24 (Get It Now) |
| Number of Home Choice stores | 17 |
| Number of Rent-A-Center Franchising International Inc. (RACFI) stores | 162 |
| Number of RimTyme stores | 31 |
| Number of Ontario locations sold to EasyHome | Several |
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What You'll Learn
Rent-A-Center's sale of several Ontario locations to EasyHome
Rent-A-Center is an American public furniture and electronics company based in Plano, Texas. The company operates on a rent-to-own business model, providing new and used brand-name furniture, appliances, computers, and electronics. As of 2014, Rent-A-Center operated approximately 2,972 company-owned stores across the United States, Puerto Rico, and Mexico.
In July 2015, Rent-A-Center sold several of its Ontario locations to EasyHome for $3.4 million. As part of this agreement, both companies signed a three-year non-compete contract, agreeing not to open any new stores in each other's countries. This sale marked a significant shift in the rent-to-own market and allowed Rent-A-Center to focus on its operations in other regions.
The sale of the Ontario locations to EasyHome was a strategic decision by Rent-A-Center to streamline its business and focus on core markets. EasyHome, a Canadian rent-to-own company, expanded its presence in Ontario by acquiring these locations. This acquisition likely strengthened EasyHome's market position and allowed them to serve a larger customer base in the region.
Rent-A-Center has a history of acquisitions and expansions. In August 2019, the company acquired Merchants Preferred, a nationwide provider of virtual lease-to-own services. This acquisition led to the unveiling of Preferred Lease, which combined the business models of AcceptanceNOW and Merchants Preferred. Rent-A-Center's subsidiary, Rent-A-Center Franchising International Inc. (RACFI), is America's first franchisor of independently owned-and-operated rent-to-own stores, with a significant presence across the United States.
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Rent-A-Center's acquisition of Merchants Preferred
Rent-A-Center has gone through several acquisitions and mergers over the years. In 2003, it acquired 295 stores from Rent-Way Inc., and in 2004, it expanded into Canada with the acquisition of five stores in Alberta. In 2006, Rent-A-Center completed the acquisition of competitor Rent-Way Inc., adding 782 stores to its portfolio. However, one notable acquisition was the company's purchase of Merchants Preferred in 2019.
Merchants Preferred is a nationwide provider of virtual rent-to-own services, with approximately 2,500 locations. The acquisition deal was valued at approximately $47.5 million, consisting of $28 million in cash and a minimum of 701,918 shares of Rent-A-Center common stock. This move by Rent-A-Center signalled a strategic shift from physical rental locations to a greater focus on financial services for customers with limited or poor credit profiles.
The addition of Merchants Preferred's technology platform and locations accelerated Rent-A-Center's expansion plans in the virtual rent-to-own market by at least 18 months, according to Mitch Fadel, CEO of Rent-A-Center. It also enhanced their ability to provide financing for furniture and home goods purchases at large national retailers and online partners.
Following the acquisition, Rent-A-Center unveiled Preferred Lease, an integrated retail partner offering. This combined the staffed lease-to-own business model of AcceptanceNOW with Merchants Preferred's virtual lease-to-own services. The acquisition of Merchants Preferred's assets, including its back-office infrastructure, technology, and management team, positioned Rent-A-Center for growth and differentiation in the market.
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Rent-A-Center's lease-to-own kiosks within third-party retail locations
Rent-A-Center, Inc. (RAC) operates lease-to-own kiosks within third-party retail locations across the United States. The company was incorporated in 1986 and, as of 2014, operates approximately 2,972 company-owned stores in the US, Puerto Rico, and Mexico. This accounts for approximately 35% of the rent-to-own market in the US based on store count.
RAC provides new and used brand-name furniture, appliances, computers, and electronics. Their rent-to-own business model typically involves small initial payments and no long-term obligations. Customers can return an item at any time without penalty and have the option to re-rent the same item and resume payments from where they left off.
In 2006, RAC launched lease-to-own kiosks within third-party retail stores under the brand name RAC Acceptance. These kiosks were transitioned to the AcceptanceNOW brand in January 2014. In August 2019, RAC completed the acquisition of Merchants Preferred, a nationwide provider of virtual lease-to-own services. Following this acquisition, RAC unveiled Preferred Lease, a combined business model of AcceptanceNOW's staffed lease-to-own kiosks and Merchants Preferred's virtual lease-to-own business.
The lease-to-own kiosks within third-party retail locations offer customers the convenience of accessing RAC's products and services without needing to visit a dedicated RAC store. These kiosks can be customised to suit the brand's needs and effectively attract target shoppers. The cost of leasing a mall kiosk can vary depending on factors such as size, location within the mall, lease length, and business type.
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Rent-A-Center's store locations in the US, Puerto Rico and Mexico
Rent-A-Center is an American public furniture and electronics company based in Plano, Texas. The company was incorporated in 1986 and operates approximately 2,972 company-owned stores in the United States, Puerto Rico, and Mexico. The company has a large presence in the US, with over 3,000 stores across the country.
Rent-A-Center's operations include 24 retail installment stores called Get It Now, based in Wisconsin, and 17 Home Choice stores in Minnesota. The company's subsidiary, Rent-A-Center Franchising International Inc. (RACFI), operates 162 rent-to-own stores in 31 states under the Rent-A-Center and ColorTyme brand names. Additionally, the company operates lease-to-own kiosks within third-party retail locations across the country under the brand name RAC Acceptance, which transitioned to AcceptanceNOW in 2014.
In Mexico, the company is known simply as RAC and operates as Home Choice, similar to its operations in Minnesota. As of December 2019, Rent-A-Center had 123 stores in Mexico and was continuing its expansion in the country.
Rent-A-Center has also contributed to charitable causes, including donating to the North Texas Food Bank and supporting hunger relief campaigns across its US stores. The company has also made contributions to Big Brothers Big Sisters of America and Boys and Girls Clubs of America locations.
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Rent-A-Center's store in Chelsea
Rent-A-Center is an American public furniture and electronics company based in Plano, Texas. The company was incorporated in 1986 and operates approximately 2,972 company-owned stores in the United States, Puerto Rico, and Mexico. The company's business model is rent-to-own, offering new and used brand-name furniture, appliances, computers, and electronics.
Rent-A-Center in Chelsea, Massachusetts, is one of the company's thousands of locations across the United States. The store is located at 57 Everett Ave and offers a wide range of products, including furniture, appliances, computers, smartphones, electronics, and more. The Chelsea store provides flexible ownership options, allowing customers to rent-to-own without any long-term contracts or big upfront payments.
The store carries major brands such as HP and Acer for computers, and offers a variety of furniture and decor options from well-known brands. Customers can also find entertainment options like flat-screen TVs and game consoles. Additionally, the Chelsea Rent-A-Center makes it convenient to rent high-quality appliances, including ranges, refrigerators, washers, dryers, and dishwashers.
The Rent-A-Center store in Chelsea provides multiple payment options to suit different budgets and preferences. Customers can choose to pay the cash price, opt for early purchase, or select a payment plan that suits their needs, including weekly, bi-weekly, bi-monthly, or monthly installments. The store also offers a no-credit option, not requiring a minimum FICO credit score and not reporting payment history to credit bureaus.
With its Worry-Free Guarantee, Rent-A-Center in Chelsea includes delivery, set-up, and service at no extra charge. Customers can also choose curbside pickup for certain products. The store provides flexibility and convenience, allowing customers to upgrade or return items at any time without penalty.
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Frequently asked questions
Yes, Rent-A-Center has closed some of its locations in the past. For example, in July 2015, the company sold several Ontario locations to EasyHome for $3.4 million.
As of 2014, Rent-A-Center operates approximately 2,972 company-owned stores in the United States, Puerto Rico, and Mexico.
Some of Rent-A-Center's subsidiaries include Get It Now, Home Choice, and Rent-A-Center Franchising International Inc. (RACFI).
The Rent-A-Center corporate office is located in Plano, Texas.
