Homesmart Converts Stores to Own Model

October 3, 2011  by in UnCategorized   

By Home Furnishings Business in Rent-To-Own on October 4, 2011

Furniture, appliance and electronics rent-to-own retailer HomeSmart has converted 29 former Crusader Rent to Own stores to its model.

Eight stores acquired from Buzz's Lease Purchase & Sales will be converted in the next few weeks.

Aaron's Inc. (NYSE: AAN), Atlanta, launched the HomeSmart concept late in 2010, and now has 56 stores open under the model, with plans to open approximately 10 more by the end of 2011. In contrast to Aaron's monthly payment model, HomeSmart offers customers weekly payment lease agreements for products including computers, televisions, refrigerators, and sofas.

"Early results are positive and growth prospects are excellent for HomeSmart," said Ken Butler, Aaron's chief operating officer. "Opening multiple stores a month despite the tough economy demonstrates the need for flexible, affordable rental payment options on home products used in our everyday lives. Synonymous with our Aaron's brand, we never conduct a customer credit check. This allows customers who are cash or credit constrained but have good references the purchasing power to bring the necessities of life, such as a bed, a refrigerator, or a computer for their children's studies, into their home."

HomeSmart also is developing its executive team, with Mark Rudnick named recently as vice president of marketing. Rudnick is responsible for leading all marketing efforts for HomeSmart including brand development, guerilla marketing and advertising.

HomeSmart currently has stores South Carolina, North Carolina, Georgia, Tennessee, Florida, Virginia, Mississippi, Louisiana, Texas and New Mexico. Of the 56 stores that have been open or converted, 37 were acquired, and 19 were opened organically.