Rent-to-own News - PrimeTime! wraps fall show, industry update positive

Premier Franchisee Sandi Frye with Premier Companies President/CEO Trooper Earle.

PrimeTime! -- Nationwide Marketing Group's (NMG) twice annual conference and buying show -- wrapped up Tuesday at the Gaylord National Hotel and Convention Center in National Harbor, Maryland.

More than 2,900 attendees representing some 807 companies (RentDirect: 186 attendees/86 companies) perused  a spacious show floor featuring 152 exhibiting companies over the course of the two day event. Attendees also participated in more than 38 PrimeTime! University courses on a wide range of topics from marketing to advertising to in-store operations.

"This has been great to have the show in D.C.," said Premier Companies President and CEO Trooper Earle who said the northeast location drew around 25 Premier franchisees to the buying show. "The guys I've talked to have been very pleased with the deals here."

RentDirect Executive Director James MacAlpine said the show is the largest Nationwide has had in the northeast.

During his briefing to RentDirect members Monday, MacAlpine noted RentDirect independent member companies were exceeding the publicly traded RTO companies in same store sales revenue, profit, customers and average price per unit based on a survey of RentDirect members.

"This is a good sign that shows how the flexibility of the independent RTO dealer has really helped them reach new customers," MacAlpine said.

While MacAlpine said TV's were still the number one rental item, he noted a trend toward packaging flat screen HDTV's with computers. Laptops continue to move well, he said.

In furniture, neutral colored sectionals and leather items continue to rent well with lighter finished case goods with multi-purpose storage drawers increasing in popularity. Customers are choosing casual dining sets in darker finishes and less formal set-ups including counter and pub height benches, he said.

Of particular note, MacAlpine discussed $15 billion in losses by ocean carriers in 2009 that has led to the dry docking of many vessels and, compounded with labor shortages throughout China, Vietnam and Malaysia and spikes in raw material costs, are leading to delays and higher shipping prices.

"Retailers are scrambling looking for strong suppliers with strong domestic warehouse programs or made in America programs," MacAlpine said. "I think what you will see is the top 100 retailers in furniture will start putting pressure back on those warehouse to release product."

On the electronics front, MacAlpine noted plasma and LED continue to gain sales ground while LCD sales have  declined over the past three months. Innovations, particularly in the 3-D, OLED and Internet connectivity will continue to drive the television market, he said.

Appliances continue to gain ground and the industry is up 9.2 percent YTD largely due to the state stimulus 'Cash for Clunkers' programs. The biggest mover in the appliance category is bottom freezers, followed by refrigerators and side by sides.

See photos from the PrimeTime! here.