The Aaron’s Company, a staple of suburbia in the U.S., has been acquired by new owners. The company built its brand as a destination for those who want electronics, furniture and appliances but would prefer to pay for them over time.
Aaron Rents was founded in 1955 by Charles Loudermilk in Atlanta. He began refurbishing and renting folding chairs to organizations. His business rapidly grew and Loudermilk remained at the helm of the company he founded until his retirement in 2012 at age 85. The company later changed its name to The Aaron’s Company.
The Aaron’s Company ranks No. 616 in the Top 1000 Database, Digital Commerce 360’s ranking of the largest North American online retailers. There, Digital Commerce 360 categorizes Aaron’s as a Housewares & Home Furnishings retailer. Digital Commerce 360 projects Aaron’s online sales will reach $101.80 million in 2024.
The Aaron’s Company web sales by year
The Aaron’s Company acquired by IQVentures
Now, Aaron’s is undergoing yet another evolution. The Aaron’s Company, Inc. announced the completion of its acquisition by the fintech and investment organization IQVentures Holdings on Oct. 3. The deal, originally announced June 17, was valued at approximately $504 million. Aaron’s shareholders then voted to approve the deal on Sept. 25, 2024.
Company officials lauded the move.
“Today marks the beginning of an exciting new chapter for The Aaron’s Company as we continue on our journey to enhance our customers’ lives through affordable lease and retail purchase options,” said Douglas Lindsay, chief executive officer of Aaron’s.
“By combining our expertise and resources with IQVentures, we will be better positioned to accelerate our omnichannel strategy and enhance our operational efficiency, building on the momentum of our ongoing transformation over the past several years,” Lindsay said.
Lindsay spent 11 years in leadership roles at ACE Cash Express before joining Aaron’s in 2016.
Aaron’s will join an IQVentures stable that includes payment processing brand Pathtivity and IQV Servicing, which helps banks analyze loan applications.
The Aaron’s Company, Inc. bills itself as a “technology-enabled, omnichannel provider of lease-to-own and retail purchase solutions of appliances, electronics, furniture, and other home goods.” The company has grown to include several brands. In addition to Aaron’s, BrandsMart U.S.A., BrandsMart Leasing and Woodhaven are all part of the company’s portfolio.
Aaron’s offers a direct-to-consumer lease-to-own solution. It offers that through approximately 1,210 company-operated and franchised stores in 47 states and Canada, as well as its ecommerce platform.
Aaron’s battle with declining revenue
West Paschal is the co-founder and chief revenue officer at Alpine IQ, a customer data, loyalty, marketing and analytics platform. He thinks the acquisition could be what Aaron’s needs right now.
“Aaron’s hasn’t been doing great lately,” Paschal acknowledged, pointing out that the company reported Q2 revenues of $503 million, down 5.1% from $530 million the prior year. This earnings slump, Paschal said, contrasts against rival Rent-A-Center’s rising revenue, which totaled about $474.9 million in its most recent quarter for parent company Upbound Group, a 1.9% year-over-year increase.
“Aaron’s need to find a way to catch up,” Paschal said. “And fast.”
Potential omnichannel transformation
Paschal says Lindsay’s comments about omnichannel were telling.
“It’s a reminder that we live in an age where traditional marketing no longer makes the cut,” Paschal noted. “There are so many different ways to reach customers: email, direct mail, phone calls, text messages, and apps with push notifications.”
He added that a company usually picks a couple of channels and builds on them in a way that resonates. He believes Lindsay recognizes this.
“If he thinks that being acquired by IQVentures will accelerate their omnichannel strategy, that can be one of the ways Aaron’s can get back on track,” Paschal assessed.
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