Aaron's Plans Hiring Boom to Meet Demand

Following record profit and sales that fueled 950 new hires last year, specialty retailer Aaron's Inc. said it will hire nearly as many this year.

The Buckhead-based company, which specializes in the sales and rent-to-own agreements of home furniture, electronics and accessories, projects it will hire 750 employees this year as it looks to open 125 new stores.

"Aaron's has experienced consistent growth, with 2012 delivering financial results that were the best in the Company's history," Ronald W. Allen, Aaron's chairman, president and chief executive, said in a statement. "We plan to continue new store openings in 2013 across the United States and Canada, which in turn creates jobs."

Allen laid out some of the company's growth plans at its National Managers Meeting in Nashville last week.

The bullish outlook followed the company's record results in the fourth quarter of 2012 and the entire year.

Aaron's posted fourth quarter profit of $36.6 million or 48 cents per share in the three months ended Dec. 31. That's compared with $30.5 million or 40 cents per share in the last three months of 2011.

For the full year, Aaron's reported profit of $173 million, compared with $113.8 million in 2011. That meant a jump of 57 percent to shareholders who earned $2.25 in 2012 compared with $1.43 in 2011.

Founded in 1955, Aaron's has 2,075 company-operated and franchised stores in 48 states and Canada.

He gave some insight to Buckhead Patch and explained what's fueling the growth.

Q. The planned growth for 2013, what is the biggest driver of that?

A. Aaron’s continues to offer affordable and flexible lease payment programs as a popular option for attaining ownership of items such as computers, flat screen televisions, or complete living room and dining room furniture sets. For consumers with income or credit constraints, Aaron’s offers an alternative to traditional retailers who require outright purchases or layaway.  This consumer demand drives the continued growth of Aaron’s as the company expands into new markets.

Q. Is the economy turning around or are more consumers looking to rent vs. own or a little of both?

A. While the economy is turning around a little, Aaron’s customer base is large and the current tight consumer credit and high unemployment levels continue to bring customers into our stores.

Q. Who is your typical consumer profile?

A. Generally, our customers have an annual average household income of $50,000 or less and are interested in monthly lease-to-own plans to attain quality, brand-name home products such as furniture, kitchen or laundry appliances, flat screen televisions and computers.  Many of our customers have limited access to credit or cash or may wish to save their credit for emergencies, and need an alternative to credit card financing.

Q. Of the stores you plan to open in the U.S. what region of the country will see the biggest number?

A. Our largest markets are Atlanta, Dallas/Ft. Worth and Chicago and we certainly see strong growth in those markets.  We announced the opening of 32 new stores in March for expansion in the Northeast and Western regions but we continue to see strong growth across the U.S. as well.

Q. What do you project in 2014 in terms of the pace of growth? Do you think last year and this year will continue in to next year?

A. Aaron’s has a strong business model which provides customers with high-quality, basic home furnishings with no credit checks, flexible payment options and highly personalized service.  We envision that this business model has helped us weather all types of economic cycles.  Aaron’s business is very much a customer relationship business and the success of the company throughout the years attests to the superior customer service and the value proposition offered to our customers.

Q. Any plans for international expansion beyond Canada?

A. In 2011, Aaron’s created a partnership with Perfect Home Holdings in the U.K. to purchase 11.5% of the privately-held rent-to-own company.  Perfect Home Holdings Limited, which operates under the PerfectHome brand, was founded in 2006 and provides basic home furnishings in the U.K. to the non-standard credit market. This investment will enable Aaron's to learn about the U.K. market for possible future expansion there and perhaps provide an eventual gateway into other European markets. Although we feel our growth prospects remain excellent in the U.S., we plan to further explore international opportunities that could complement domestic growth.