Retail Observer

RETAILOBSERVER.COM FEBRUARY 2022 48 O ver two years ago, long before the impact Covid had on the shopping experience, I wrote an article about rent-to-own dealers looking and acting more like retail. Today, as we navigate past the initial Covid effects and work to get back to a new normal, I believe the idea is even more important to the success of the rent-to-own dealer. So many traditional retailers now have at least one lease-to-own (LTO) or lease-purchase option in store, but most retailers now have multiple choices – and now, combined with the Buy Now Pay Later (BNPL) craze, they're trying to capture the customer who cannot qualify for or does not want additional credit. So it's more important than ever for traditional brick and mortar rent-to-own (RTO) dealers to continue improving not only their relationship- driven rent-to-own foundational strength, but their retail game as well. The traditional RTO dealer has always had the ability to offer a cash or credit card transaction with every item in their store. But for the most part, customers who walked into the RTO store in the past were not shopping with cash or credit cards, or even looking to purchase retail. The pandemic has forced rental dealers to change their image – the one that says an RTO store only rents products. You may or may not remember how the rent-to-own industry was deemed an essential business in the original Cybersecurity & Infrastructure Security Agency (CISA) list dated March 19, 2020. The language that clearly included RTO as an essential business was: "Workers in hardware and building materials stores, consumer electronics, technology and appliances retail, and related merchant wholesalers and distributors – with reduced staff to ensure continued operations." Rent-to-own stores were able to remain open for business! Covid has changed the way most people do things, including shopping. During the more than year-long lockdown, most people got used to ordering nearly everything online, having it delivered, or picking it up at the store, if the store was open. As the pandemic closed restaurants and many service industry and retail businesses, it also forced many companies to implement a work-from-home model. The longer people were at home, the more they wanted to replace or upgrade their furniture, electronics and appliances, creating a buying trend that led customers to any store that was open for business. The point is that as the country slowly gets back to normal, some of those shopping habits will be likely to continue, and rent-to-own dealers must be ready to fill that need. Two things remain very important to me to help RTO dealers stay competitive in the retail space: overall store image and the digital footprint. First, a positive store image is key for any retailer. Two years ago, I used Target for my store image example, after Target jumped into store refurbishment by committing to refresh more than 1,000 locations by the end of 2020. Store remodels aren't the only driving factor, but Target called the refurbishments a vital component that accounted for their comp sales growing approximately 10% during that period. The Target stock price was around $125 in December 2019 and around $250 in December 2021. That growth certainly isn't all about store remodels, but I'm sure that customer loyalty is driven by the shopping experience. I think you would agree that store image is an important piece in driving both repeat business and new customers into your store. And that means creating and maintaining a great-looking, well- merchandized retail-like location! The second influencer is your digital footprint. Rent-to-own dealers today must pay attention to their web presence. Does your website let shoppers know that you can sell living room furniture, appliances and electronics, as well as renting products? These answers, in my opinion, define the expectations of the consumer in the rent-to-own marketplace today! In small-town or urban America there's no reason your local rent-to-own dealer can't also be the retailer of choice. We just need to make sure our image is telling customers that. The Nationwide Marketing Group has delivered impressive digital solutions for the rent-to-own community. Now is the time to take a hard look at your business's digital footprint and make changes that will meet your customers and potential customers where they are in their buying journey. I said this over two years ago, but by looking and acting a little more like retail today, you'll position your RTO store for greater business success tomorrow. Keven Dalke, Director of RentDirect, Nationwide Marketing Group RENT-TO-OWN, RETAIL OR BOTH? RO Keven Dalke Rent-to-Own Trends

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