Retail Observer

RETAILOBSERVER.COM DECEMBER 2021 52 W e have all been witnesses to the great metamorphosis of business over the last 24 months – a period of unprecedented worldwide changes and challenges for all sectors. The Small Business Administration (SBA) and other federal agencies have reported that 200,000 U.S. businesses closed permanently over the past 12 months, in addition to the 600,000 businesses estimated to close in any given year. Remarkably, we have also witnessed the true spirit behind American entrepreneurial resilience. When faced with daunting closures and changes to in-store purchasing, along with the limited buying options of traditional staple items, our customers have evolved and adapted tremendously, which has invigorated the businesses where they shop. The vast majority of smaller businesses or single-store owners within the rent-to-own (RTO) industry have traditionally followed the business practices of classic check- or cash-based payment processing, such as auto repair and other service and home maintenance companies. These last two years have seen an exponential growth in RTO businesses becoming power users of various payment methods and customer-focused apps. Some may actually give "thanks" to the pandemic for fast-tracking them into the digital business world, whereas even our most seasoned industry pillars would have thought the process would have continued as a slow, albeit inevitable evolution. Recent advertising statistics show that as of January 2021 there were 5.22 billion unique mobile phone users in the world, which makes up a whopping 66.6 percent of the total global population. Who would have thought that in a single 12-month period the world would have gained 93 million more mobile phone/device users? Given the ubiquity of in-hand devices, it is not surprising to know that 96 percent of Internet users are interacting from their fingertips. These changes have been seen by even our smallest store owners, who have risen to the occasion and actively created an online presence for their businesses. Now, more than half of our national membership has an e-commerce option, which brings in a new realm of marketing and customer connections. For some of our national membership, this has been a great investment in reaching their customers while battling lower in-store traffic and struggling to fill open positions caused by – as first-hand accounts indicate – unemployment benefits disincentivizing people to work. RTO is now running neck and neck with other retail buying opportunities for customers at every price point and is successfully connecting with buyers, from boomers to Gen Z. To meet the challenges, we must be innovative and make active changes. Recurring progress and success lead naturally to evolution. With the ripple effects of the challenges to business in general from COVID-19, to the behavioral changes we have seen recently in buyers, it is with pride that single-store owners, multi-location and multi-state RTO businesses continue to renew their foothold in both in-person and digital local commerce, as well as revitalizing their support of their customers' needs. We should all take an active step in our own metamorphosis and welcome the positive changes that become possible when we take actionable steps for self-improvement, be it for the personal or professional benefits. THE REBIRTH OF BUSINESS RO Dennis Shields Rent-to-Own Trends Dennis Shields is Executive Director of TRIB Group, the nation's largest owner/member buying cooperative serving the rent-to-own retail channel. For more information, visit www.tribgroup.com or call us at (770) 451-4302. TRIB Group will gather in Dallas next March for its 2022 Meeting of Minds event, where members can glean the latest RTO tools and services to help them tackle new challenges.

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