Aaron Rents - Competitors

Aaron Rents Competition

Now Viewing Aaron Rents's competition in: Consumer Product Rental (primary)

Recent Developments

Identity Theft Requirements Coming for Rent-to-Own - As of November 1, 2008, rent-to-own companies will have to comply with new federal regulations to combat identity theft. Congress passed the Fair and Accurate Credit Transactions Act (FACTA) in reaction to the growing problem of identity theft in the US. Under FACTA, companies must have a written privacy policy that's signed by all employees, a plan to offset damages from potential loss of secure information, and a security officer in charge of personal information. Companies whose actions or oversights contribute to identity theft can be sued or fined.

Stimulus Package to Aid Rent-to-Own - Some experts believe that the economic stimulus package is good news for the rent-to-own industry, as it should help consumers who want to rent-to-own furnishings and electronics. These consumers have been strongly impacted by the higher costs of food and gas, so the rent-to-own industry hopes the stimulus package will put money in consumers' wallets for more discretionary purchases.

Rental Market Expands - The North American rental market exceeded $42 billion in 2007, according to the American Rental Association (ARA). The US rental market was $36.5 billion, and the Canadian rental market $5.8 billion. ARA predicts that the US rental market will grow at a compound annual rate of 4.1 percent through 2012, led by party and event rental equipment.

Competitive Landscape

Demand is driven by personal income and the timing and popularity of new movie releases. The profitability of individual companies depends on the right merchandise mix and inventory financing costs. Large companies have advantages in economies of scale in purchasing, distribution, and advertising. Small companies compete effectively by providing superior customer service and catering to local demographics. The industry is labor intensive: average revenue per worker for a typical company is less than $100,000.

Full Industry Overview For Consumer Product Rental

Consumer Product Rental Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of the US rental industry, including videos and discs, is forecast to grow at an annual compounded rate of 4.5 percent between 2007 and 2012.

Rental Industry Growth Levels

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.