Similar Consumer Profiles Suggest Successful Merger of Rent-A-Center and Buddy’s Home Furnishings
Q: Would Rent-A-Centers be a good fit under Vintage Capital Management (the controlling shareholder of Buddy’s Home Furnishings, a competitor of Rent-A-Center)?
A: Yes, Rent-A-Center shoppers have similar demographic profiles and audience affinities to Buddy’s Home Furnishings shoppers. Also, they are equally likely to shop at budget retailers like Family Dollar, Dollar General, and Food 4 Less.
With the news that Rent-A-Center is planning to sell to Vintage Capital Management, the controlling shareholder of competitor Buddy’s Home Furnishings, our team compared consumer profiles of the two “rent-to-own” retailers to determine if the merger will be a good fit.
More Hispanics shop at Rent-A-Center than Buddy’s
We uncovered similar demographic profiles between Rent-A-Center and Buddy’s Home Furnishings, with fairly equal distributions in age, education, income, and economic factors. The race of consumers to both retailers varied slightly.
We found that visitors to both retailers are predominately white or Hispanic, though Rent-A-Center shoppers include about 10% more Hispanics than Buddy’s. 41% of Rent-A-Center shoppers are white and 37% are Hispanic. 48% of Buddy’s shoppers are white and 25% are Hispanic.
On average, a little over 75% of shoppers make less than $75k a year and the median household income is between $46k and $47k.
Rent-to-own shoppers are “Bargain Hunters”
By comparing Rent-A-Center and Buddy’s shoppers to our comprehensive audience parameters, including location visits, app usage, and more, we determined that more than a quarter of both groups of consumers are considered “Bargain Hunters.” Additionally, less than 4% are online shoppers.
Shoppers also visit Family Dollar and Dollar General
When compared to the average American consumer, Rent-A-Center and Buddy’s shoppers are more likely to visit budget retailers like Family Dollar and Dollar General.
- Rent-A-Center typically has about 10% more Hispanic shoppers than Buddy’s Home Furnishings.
- Over 75% of shoppers to both retailers make less than $75k a year.
- On average, 27% of shoppers to both retailers are “Bargain Hunters.”
- On average, shoppers to both retailers are 147% more likely to visit Family Dollar and 113% more likely to visit Dollar General.