The Aaron's Company, Inc. (AAN): history, ownership, mission, how it works & makes money (2024)

A Brief History of The Aaron's Company, Inc. (AAN)

The Aaron's Company, Inc. is a lease-to-own retailer founded in 1955 by R. Charles Loudermilk Sr. in Atlanta, Georgia. The company started as Aaron's Rental Purchase, with the goal of providing customers with affordable rental options for furniture, electronics, and appliances.

Over the years, The Aaron's Company expanded its offerings and grew its presence across the United States. In 1982, the company went public and continued to see significant growth and success in the rent-to-own industry.

In 2014, The Aaron's Company acquired Progressive Finance Holdings, LLC, a virtual lease-to-own company, to further enhance its customer offerings and reach. This acquisition allowed the company to expand its customer base and provide more flexible payment options.

Today, The Aaron's Company, Inc. operates over 1,400 stores nationwide and continues to be a leader in the lease-to-own industry. The company prides itself on providing customers with convenient and affordable rental options for a variety of products.

The Aaron's Company, Inc. (AAN) is a publicly traded company, which means that it is owned by shareholders who hold shares in the company. The ownership of The Aaron's Company, Inc. is spread out among these shareholders, with no single entity or individual owning a majority stake.

As of the latest data available, the largest institutional shareholder of The Aaron's Company, Inc. is Vanguard Group Inc., which owns about 10% of the company's outstanding shares. Other major institutional shareholders include BlackRock Inc., Dimensional Fund Advisors LP, and State Street Corp.

In addition to institutional investors, there are also individual retail investors who own shares of The Aaron's Company, Inc. through their brokerage accounts. These retail investors can include employees of the company, individual investors, and other interested parties.

Overall, The Aaron's Company, Inc. is owned by a diverse group of shareholders, both institutional and individual, who have a vested interest in the company's performance and success.

• Vanguard Group Inc. - 10% ownership
• BlackRock Inc. - Ownership percentage not disclosed
• Dimensional Fund Advisors LP - Ownership percentage not disclosed
• State Street Corp. - Ownership percentage not disclosed

The Aaron's Company, Inc. (AAN) Mission Statement

The mission of The Aaron's Company, Inc. (AAN) is to provide top-quality, affordable lease-to-own solutions for our customers, while also creating a positive impact in the communities we serve.

At The Aaron's Company, Inc., we are committed to:

• Putting our customers first: We strive to understand the unique needs of each customer and provide them with flexible payment options that fit their budget.
• Delivering exceptional service: Our team is dedicated to providing friendly, helpful service to ensure a seamless leasing experience for every customer.
• Building strong community partnerships: We believe in giving back to the communities where we operate, through charitable donations, volunteer efforts, and other initiatives.
• Continuously improving: We are always looking for ways to innovate and enhance our products and services, in order to better serve our customers and communities.

By staying true to our mission and values, we aim to be the leading lease-to-own company, known for our integrity, reliability, and commitment to excellence.

How The Aaron's Company, Inc. (AAN) Works

The Aaron's Company, Inc. is a leading omnichannel provider of lease-purchase solutions. The company operates through its Aaron's Business and Progressive Leasing segments, offering a variety of products such as furniture, appliances, electronics, and computers through lease-to-own agreements.

Customers can shop at physical Aaron's stores or online through the company's website. They have the option to lease products for a specific period and make regular payments until they own the item. The lease-to-own model provides flexibility for customers who may not have the means to make a large upfront purchase.

The Aaron's Company, Inc. also provides financial services through its Progressive Leasing segment. This segment offers a lease-purchase solution for customers with no credit or limited credit history, allowing them to acquire products with affordable payments.

• Aaron's Business: This segment operates through more than 1,400 company-operated and franchised stores across the United States and Canada. Customers can visit these stores to select products for lease-to-own agreements.
• Progressive Leasing: This segment partners with retailers to offer lease-to-own solutions in-store and online. The company has a wide network of retail partners, expanding its reach and customer base.

Overall, The Aaron's Company, Inc. works by providing affordable lease-purchase options for customers, allowing them to obtain the products they need without a large upfront payment. Through its omnichannel approach, the company caters to a wide range of customers, making it a leader in the lease-to-own industry.

How The Aaron's Company, Inc. (AAN) Makes Money

Rent-to-Own Services: The primary source of revenue for The Aaron's Company, Inc. is through its rent-to-own services. Customers can lease furniture, electronics, appliances, and other household items from Aaron's stores with the option to purchase the item at the end of the rental period. This model allows the company to generate consistent cash flow through recurring payments from customers.

Retail Sales: In addition to its rent-to-own services, Aaron's also generates revenue through retail sales. Customers have the option to purchase items outright from the company's stores, providing an additional stream of income for the company.

Franchise Fees: The Aaron's Company, Inc. also makes money through franchise fees. Franchisees pay an initial fee to operate an Aaron's store under the company's brand, as well as ongoing royalties based on their sales. This allows the company to expand its reach without having to invest in opening new company-owned stores.

• Extended Warranty Sales: Aaron's offers extended warranties on the products it leases or sells, providing customers with added protection for their purchases. The company earns revenue from the sale of these warranties, which can help increase its profitability.
• Service and Delivery Fees: Aaron's charges service and delivery fees for its rent-to-own products, adding to its overall revenue. These fees cover the costs associated with delivering and setting up the items for customers, providing an additional source of income for the company.