Resilient business model, focus on innovation, and continuous expansion in technology and omni-channel offerings have been driving Rent-A-Center, Inc. RCII’s performance. Strength in the company’s Rent-A-Center Business and Preferred Lease segments, which have been contributing to overall performance, also bodes well. Impressive lease-portfolio performance and customer-payment activity have been driving both businesses, even without additional government stimulus. As a result, management recently issued an upbeat outlook for the third quarter and raised outlook for 2020.
Let’s Delve Deep
Rent-A-Center has been making investments to enhance the omni-channel platform. This is likely to offer customers a seamless approach across channels, markets, products and brands. It has also been leveraging cloud-based point-of-sale platform to manage orders more efficiently, lower losses and cut operating costs. Apparently, e-commerce revenues surged 60% in the second quarter of 2020 and accounted for nearly 19% of the overall Rent-A-Center business revenues. Impressively, the e-commerce business is likely