Consumer Products Rental
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 8,300 consumer products rental companies in the US provide rental services for a wide variety of household and personal goods and items used for special events. Major rental or leasing revenue categories include home entertainment equipment; special events equipment; household furniture and furnishings; and formal wear, costumes, and accessories. Companies may also rent recreational goods, such as boats, skis, and bikes. Firms may also sell goods or allow customers to purchase goods during the rental period.
High Risk Customers
Many customers of consumer products rental providers can be considered high risk, and may be more likely to default or miss payments than traditional retail customers.
Competition from Traditional Retailers
Consumer products rental providers face competition from traditional retailers, such as consumer electronics stores, furniture stores, department stores, and mass merchandisers.
Industry size & Structure
The average consumer products rental provider works out of 1-2 locations employs 15-16 workers and generates $3 million annually.
- The consumer products rental industry consists of about 8,300 firms that employ about 131,500 workers and generate about $24.2 billion annually.
- Industry concentration varies according to product category. In the consumer electronics and appliance and video rental categories, the top 8 companies account for 87-89% of segment revenue. In the formal wear and home health equipment categories, the top 8 companies account for 50-59% of segment revenue. Other categories, such as recreational goods rentals, are fragmented.
- Establishments that rent consumer electronics and appliances account for 35% of firms and 36% of industry revenue. Establishments that rent home health equipment account for 14% of firms and 20% of industry revenue.
- The industry includes national chains, franchises, and independent operators.
- Large companies include Aaron's, Upbound Group (formerly Rent-A-Center), and divisions of The Men's Wearhouse (tuxedo rentals).
Industry Forecast
Consumer Products Rental Industry Growth
Recent Developments
Jan 31, 2025 - Budgets Tighten for Lower-Income Consumers
- Spending patterns at dollar stores suggest that low-income consumers are tightening their belts, according to The Wall Street Journal. While inflation has slowed and wages have risen for many, some of the country’s lowest wage earners are feeling pinched. Many low-income families were able to build their savings in the years immediately following the pandemic amid stimulus checks, higher demand for blue-collar jobs, and pandemic-era food assistance and child tax credit benefits. However, many low-income workers have spent down their savings. Some dollar stores report that their customers are waiting until the last minute to make event-based purchases, such as holidays, and spending at the end of the month – when lower-income families’ budgets are depleted – has fallen.
- Some US consumers continue to have difficulty paying their rent on time, according to two reports released in late January 2025 by the Consumer Financial Protection Bureau (CFPB). The reports studied rental payment data between September 2021 and November 2024 and found that the average late fee was $85 over that period. In November 2024, the percentage of renters who paid late fees dropped by 14% compared to a high of 23% in February 2023. However, between September 2021 and November 2024, the median outstanding rent balance increased by 60%, suggesting that affected households were under increased financial stress. An inability to pay rent on time may prompt consumers to pull back on discretionary spending. Electronics, household appliances, furniture, fitness equipment, and computers account for more than 55% of consumer rental industry revenue.
- Americans are increasingly opting to rent products instead of buying, either to save money, enjoy greater variety, or have more flexible lifestyles, according to The Wall Street Journal. More than 25% of Americans said they rent or lease their clothing, furniture, car, or electronics, according to a recent survey commissioned by Credit Karma. Amid high inflation, some consumers – many of them Gen Zers - find it more economical to rent items rather than buy. A lack of affordability in the home-buying market has contributed to a stronger rent-first mindset among young Americans, some of whom feel homeownership will likely remain out of their reach. Industry observers say renting day-to-day items has gained popularity as more rental companies have entered the market.
- Clothing rental firm Nuuly, a brand of Urban Outfitters, has managed to eke out a profit in a fledgling industry that has struggled with losses, according to The Wall Street Journal. For Urban Outfitters’ fiscal quarter that ended July 31, the firm said Nuuly earned $5.3 million in operating income after posting a $2.4 million loss the same quarter a year earlier. Industry observers suggest Nuuly has benefitted from a highly automated operation and its parent company’s apparel business experience. While apparel rental has proven popular with consumers, especially Gen Z and Millennials, the industry has struggled with costs and logistics including washing and repairing garments and return shipping. According to US data and analytics firm GlobalData, US shoppers spent about $1.7 billion on fashion rentals last year and are expected to spend nearly $2 billion in 2024.
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