What is Brief History of Rent-A-Center Company?

What is the history of Rent-A-Center?

Rent-A-Center, a leader in the lease-to-own sector, began its journey in 1973 in Wichita, Kansas, founded by Thomas Devlin and W. Frank Barton. The company's roots, however, trace back to 1986 with Renters Choice. A significant milestone occurred in 1998 when Renters Choice acquired Thorn Americas, Inc., which operated under the Rent-A-Center name, leading to the adoption of the Rent-A-Center, Inc. identity.

The concept of rent-to-own, designed to help consumers acquire goods without traditional credit, originated in the 1960s. Rent-A-Center's evolution into a major business, now part of Upbound Group, Inc. since February 2023, showcases its enduring impact on consumer access to essential items like furniture and electronics. The company reported a trailing twelve-month revenue of $4.24 billion as of July 2025.

Understanding the company's trajectory, including its strategic moves and market presence, provides insight into its operational model, such as its Rent-A-Center BCG Matrix analysis.

The concept of renting items with the option to own them originated in the 1960s, driven by a need to make goods accessible to those with limited credit. This innovative approach laid the groundwork for what would become a significant player in the retail industry.

The Genesis of Rent-to-Own

Ernie Talley pioneered the rent-to-own model in the 1960s, observing customers' difficulties in purchasing appliances due to credit constraints. His system allowed individuals to rent items like washers and dryers, with ownership granted after a period of payments, bypassing traditional credit checks.

• Pioneered by Ernie Talley in the 1960s
• Addressed limited cash and credit access
• Offered ownership after rental payments
• Bypassed traditional credit checks

The official founding of the Rent-A-Center brand occurred in 1973 in Wichita, Kansas, by Thomas Devlin and W. Frank Barton. Devlin, a former employee of Talley's business, saw the potential to expand the rental concept to a wider range of name-brand products.

Formalizing the Brand

Thomas Devlin and W. Frank Barton founded the Rent-A-Center brand in 1973. Their business model focused on leasing new and used brand-name furniture, appliances, computers, and electronics through agreements with small initial payments and no long-term debt, allowing for penalty-free returns.

• Founded in 1973 by Thomas Devlin and W. Frank Barton
• Expanded to include furniture, appliances, computers, and electronics
• Offered flexible lease-to-own agreements
• Allowed customers to return items without penalty

A notable development in the company's history involved Mark Speese, who joined in 1979. Speese later co-founded Vista Rent-To-Own in 1986, which eventually acquired the original Rent-A-Center brand in 1998. This acquisition led to Speese taking on leadership roles, illustrating a significant chapter in the Brief History of Rent-A-Center.

Evolution and Acquisition

Mark Speese, an early Rent-A-Center employee, later established a competing company, Vista Rent-To-Own, which evolved into Renters Choice, Inc. In 1998, Renters Choice acquired the original Rent-A-Center, and Speese became Chairman and CEO in 2001. Renters Choice went public in 1995, raising capital to support its growth and acquisition strategies.

• Mark Speese's involvement
• Founding of Vista Rent-To-Own (later Renters Choice, Inc.)
• Acquisition of Rent-A-Center in 1998
• Speese's leadership role post-acquisition
• Renters Choice's public offering in 1995

Complete Rent-A-Center Strategy Bundle

• 6 Full Frameworks, 1 Company – All Pre-Researched
• Each Framework Fully Sourced with Real Company Data
• Built for Strategy Courses, Case Studies & MBA Programs
• Adapt to Your Assignment – No Starting from Scratch
• 6 Frameworks: SWOT, PESTLE, Porter's, BMC, BCG and 4P's

GET FULL BUNDLE

The early years of what would become a major player in the rent-to-own sector were marked by foundational efforts and strategic acquisitions. Ernie Talley's initial venture, 'Mr. T's', expanded to 14 locations by 1974 before its sale, laying early groundwork for the industry.

Pioneering the Rent-to-Own Model

Ernie Talley's 'Mr. T's' chain was instrumental in establishing the rent-to-own concept. By 1974, this early business had grown to 14 stores, demonstrating the viability of the model before Talley sold the operation.

Early Brand Acquisition and Growth

The Rent-A-Center brand, established by Thomas Devlin, experienced consistent growth. This brand's trajectory led to its acquisition by Thorn EMI in 1987 for a significant sum of $594 million.

Vista Rent-To-Own's Expansion

Mark Speese's Vista Rent-To-Own, founded in 1986, embarked on an aggressive expansion strategy. A key move was the December 1993 acquisition of an 84-store rent-to-own chain, leading to a rebranding as Renters Choice, Inc.

Public Offering and Further Acquisitions

Renters Choice, Inc. went public on the NASDAQ in 1995, securing nearly $26 million to fuel its growth. This capital enabled the acquisition of 72 stores from Crown Leasing Corp. and 135 stores from Pro Rental Inc. in the same year, significantly expanding its footprint.

Rapid Revenue Growth and Market Dominance

The company's financial performance accelerated, with revenues more than doubling to $238 million in 1996, accompanied by $18 million in net income. By the close of 1997, Renters Choice operated 504 company-owned stores, reporting revenues of $327.5 million and a net income of $25.9 million, showcasing its impressive Growth Strategy of Rent-A-Center.

Consolidation and Rebranding to Rent-A-Center

A pivotal moment in the history of Rent-A-Center company occurred in August 1998 with the acquisition of Thorn Americas, Inc., which managed 1,474 stores under the 'Rent-A-Center' name. This strategic move culminated in the official rebranding to Rent-A-Center, Inc. on December 31, 1998, solidifying its position as the largest entity in the rent-to-own industry.

From PESTLE Factors to Full Strategy Bundle

• PESTLE + SWOT + Porter's + BCG + BMC + 4P's in One Bundle
• Every Strategic Angle Covered – Nothing Left to Research
• Pre-filled with Company-Specific Research
• No Missing Sections for Your Case Study
• One Download Covers Your Entire Company Analysis

GET COMPLETE BUNDLE

The Rent-A-Center company history is marked by strategic expansions and technological advancements, alongside significant legal and operational hurdles. Key developments include the introduction of RAC Acceptance in 2006, which evolved into Preferred Lease, and the substantial acquisition of Acima Holdings in 2021 for $1.65 billion, positioning the company as a leader in the fintech lease-to-own sector.

Innovations have focused on expanding reach and enhancing customer experience, notably through the digital transformation to cloud-first operations and the development of virtual lease-to-own solutions. The RAC Exchange program, introduced in March 2024, allows customers to exchange current rented items with prior rent applied to new products, increasing flexibility.

RAC Acceptance / Preferred Lease

Established lease-to-own kiosks in third-party retail locations, expanding the company's market presence beyond traditional stores.

Acquisition of Acima Holdings

This acquisition transformed the company into a leading fintech platform in both traditional and virtual lease-to-own markets.

Cloud-First Operations Migration

Undertook a comprehensive migration to cloud-first operations to improve its e-commerce website, mobile applications, and overall customer engagement.

RAC Exchange Program

Introduced in March 2024, this program allows eligible customers to exchange rented products, applying a portion of previous payments to new items, enhancing customer flexibility.

Challenges have included significant litigation concerning allegations of overcharging and misleading practices, with a notable settlement of $15.5 million in August 2022 related to inflated cash prices in its kiosk businesses. The company also faced market over-penetration after acquiring Rent-Way, Inc. in 2006, leading to store closures and consolidations between 2007 and 2009 to optimize its footprint.

Litigation and Settlements

The company has faced extensive litigation, including class-action suits over high interest rates and settlements for alleged misleading practices, such as the $15.5 million settlement in California in 2022.

Market Over-Penetration

Following the 2006 acquisition of Rent-Way, Inc., the company experienced market over-penetration, necessitating the closure or merging of 282 stores between 2007 and 2009 to streamline operations.

Brand Reorganization

Strategic pivots have included rebranding efforts, such as the corporate name change to Upbound Group, Inc. in February 2023, reflecting a broader business evolution and a focus on customer-centric solutions.

Rent-A-Center Business Model + Strategy Bundle

• Ideal for Essays, Case Studies & Slides
• Get BCG, SWOT, PESTLE, Porter's, 4P's Mix & BMC Together
• Company-Specific Content Already Organized
• One Bundle Replaces Days of Independent Research
• Buy the Bundle Once. Use Across All Your Assignments

GET COMPLETE ANALYSIS

The history of Rent-A-Center, now Upbound Group, Inc., is a dynamic journey through the evolving rent-to-own industry, marked by strategic acquisitions and a consistent focus on customer accessibility.

Strategic Digital Expansion

Upbound Group, Inc. is enhancing its omni-channel platform, focusing on e-commerce and mobile applications. This strategy aims to provide seamless customer experiences and adapt to evolving consumer needs.

Diversified Financial Solutions

Recent acquisitions, like Brigit in January 2025, signal a move towards offering a broader range of financial products. These include earned wage access and credit-building tools for its customer base.

Future Financial Performance

Management anticipates net income attributable to common shareholders between $0.75 to $0.79 per diluted share for 2025. This projection reflects confidence in the company's growth strategy.

Customer Empowerment Vision

The company's vision is to empower customers with greater financial confidence and access to flexible payment alternatives. This aligns with the founding principle of providing accessible paths to product ownership.

From Five Forces to Full Company Analysis

• Includes SWOT, PESTLE, BMC, BCG and 4P's
• Pre-Researched with Company-Specific Data
• Best Value for a Complete Analysis
• Ready to Adapt for Your Case Study
• Ready for Essays and Slidesd

GET FULL BUNDLE