Atlanta - Another retailer is looking for a chief executive: Aaron’s Inc. announced that Ronald W. Allen, 72, will retire as CEO and as a member of the board of directors of Aaron’s, effective Aug. 31. Allen has served on the board since 1997 and as CEO since February 2012.
The board has retained Spencer Stuart, an executive recruiting firm, to assist in the process of identifying Allen's successor. The search process will include a full review of both internal and external candidates.
Aaron's has struggled in recent quarters, with the rent-to-own-retailer describing a difficult economic environment for its low- to middle-income shoppers. For the second quarter, Aaron’s revenues rose 22.1% from a year earlier, mainly because of its acquisition of Progressive, a company that offers rent-to-own transactions outside of traditional rent-to-own stores. Earnings, however, fell 65%, however, and revenue from the company’s core sales and lease ownership division was down 2%.
"It has been a privilege to lead the finest associates in the industry, whose commitment, integrity and ingenuity never cease to impress me," said Allen. "With the plans we have in place to deliver improved results in our core business and the transformational acquisition of the fast-growing virtual RTO Progressive business, I believe that we have a strong platform for long-term growth, and I am confident in the company's future.”