discount gas grills Big Lots Entering New Period Of Growth: Conn's Rent-To-Own Strategy Is A Winner

by:Longzhao BBQ     2019-10-17
discount gas grills Big Lots Entering New Period Of Growth: Conn\'s Rent-To-Own Strategy Is A Winner
If you own BIG on Friday, you'll benefit from a 13% price fluctuation, but that's just the beginning.I started reporting a lot in the third quarter of last year (NYSE: Big ).To some extent, the company seems to have been untied.Then in the fourth quarter, the CEO issued the following statement: Fourth quarter vs first quarter: industry focus let's step back and review what happened in the fourth quarter.Large-Box retailers have experienced the same store decline in quantity, and insufficient demand has led them to enter q1.Wal-Wal-Mart (NYSE: WMT) reported the same first quarter--Store sales0.1%, Target (New York Stock Exchange Code: TGT) reported the same for the first quarter--Store sales0.3%.The fact is, Target was in trouble before the data was released.breach.Wal-Mart's response to this unwanted trend is rapid.-A new CEO took over the company in February, followed by an accelerated small expansion plan and the introduction of organic food.The company plans to use the supercenter as a distribution center, which will improve ROA across the organization.Target is still looking for a new CEO, but at least the search has started.And, who knows how long it will take for the company to recover from Data Breach Litigation and perception.With these events in mind, a lot of games are slightly ahead.David Campisi, the new CEO, opened the earnings call with such remarks: he has every reason to be proud.Sales growth in comp stores has declined over the past two years.7%, but this trend was blocked this quarter.Although the sales of the comp store have not grown much, this is a victory.Source: Big LotsAs focuses on creating the ideal buying experience and is continuing to improve its business model for customers they call "Jennifer.All of a sudden, many companies have a coherent action plan that resonates with their customers.Food, furniture and Financial food are common strategies for the discounted retail industry.You bought food at the grocery store 15 years ago and now you can buy groceries at the dollar store.Although it is traditionally a low-margin product for retailers, it increases the trading of customers-People consume food and come back more.Maybe they buy something else when they do it.Furniture is not a common strategy, but it is a big project to buy only once a year at most.Put food and furniture together and you have a place where Jennifer can shop every week and she will remember to be at the entrance when she is ready to buy high profit furniture.Not only can Jennifer buy that dinner, but a lot of stuff will help pay for it.Still, what if Jennifer doesn't have the same credit as many discounted retail shoppers.There is also a solution for the Earth section.Much like Rent-a-Rent for the center, Aaron or Kang en (Nasdaq: Kang en), rent for the great sectionto-own program.That is to say, only Kang en is a retailer that provides rent.to-own program.That is to say, the business model is based on sales-not renting --Furniture and electronics.Let's see how Conn is doing.Conn's report showed that comp sales rose 35% last year, creating a record net income, with a recent report of 15 same-store sales in the first quarter.2%.According to the company, the growth was driven by a 65% increase in sales of furniture and mattresses.Their strategy is simple.Provide customers with housing financing for large ticket projects.Conn operates 80 retail stores in Arizona, Colorado, Luiz Anna, New Mexico, o'craher, Tennessee, and Texas, specializing in furniture and consumer electronics.Big companies are rolling out their financing plans to more than 1,400 stores in 48 states.Moreover, the financing project of the land section is not only furniture, but also other large ticket projects such as lawn and garden, patio furniture, gazebo, gas grill and even swimming pool.Large net sales increased by 1 due to these plans.1% more than last year, comp sales increased by 0.9%.Revenue from continuing operations is $28.$6 million or $0.50 per share after dilution.I'm excited about the company, but it's hard to set a price target.The business model is being redefined, and although it is a proven business model, it is not clear how long it will take for market trust revenue.One thing is for sure.-If this new financing strategy works, it will promote the same benefits --Store sales throughout the chain.I believe this is a 2-The growth trend of the Earth block for three years.Disclosure: I do not have a position in any of the stocks mentioned, nor do I have a plan to start any position in the next 72 hours.This article was written by myself and expressed my views.I have not received compensation (except for Seeking Alpha ).I have no business relationship with any stock company mentioned in this article.
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