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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 8,400 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 14-15 workers and generates $2.3 million annually.

    • The consumer products rental industry consists of about 8,400 firms that employ about 123,000 workers and generate about $19 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, Rent-A-Center, and divisions of The Men's Wearhouse (tuxedo rentals).
                                Industry Forecast
                                Consumer Products Rental Industry Growth
                                Source: Vertical IQ and Inforum

                                Coronavirus Update

                                Apr 28, 2022 - Wedding Rebound Expected
                                • After two years of reduced spending due to the pandemic, the wedding industry is expected to stage a massive comeback in 2022, a potential boon for consumer products rental companies. According to The Wedding Report, the number of US weddings in 2022 is expected to reach nearly 2.47 million, nearly double the number in 2020 and the largest number of weddings since 1984. Total wedding industry sales in 2022 are forecast to reach more than $60 billion, up from $43.5 billion in 2021 and more than double 2020’s sales of $25.7 billion.
                                • Congress enacted the Emergency Rental Assistance (ERA) program in 2021 to prevent evictions during the coronavirus pandemic. Of the $46 billion allocated, as of the end of February 2022, the ERA program had paid out $30 billion to 4.7 million households. The remainder of the ERA funds is expected to be paid out by mid-2022. Once emergency funds run out, the US Treasury Department urges state and local governments to provide additional funding from the $350 billion they received through the American Rescue Plan Act. A significant portion of the consumer product rental industry’s low-income customer base may struggle to make payments if their housing insecurity increases.
                                • The Conference Board’s Consumer Confidence Index decreased to 107.3 in April from 107.6 in March 2022. The Present Situation Index—based on consumers’ assessment of current business and labor market conditions— fell to 152.6 from 153.8 in March. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—increased to 77.2 from 76.7. “The Present Situation Index declined but remains quite high, suggesting the economy continued to expand in early Q2. Expectations, while still weak, did not deteriorate further amid high prices, especially at the gas pump, and the war in Ukraine. Vacation intentions cooled but intentions to buy big-ticket items like automobiles and many appliances rose somewhat,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.
                                • Low-income households ($15,000 to $50,000 annual income) account for over 80% of rent-to-own customers and may be more likely to default or miss payments during periods of financial distress.
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