Thread regarding Rent-A-Center Inc. layoffs

How the smoke and mirrors work!

Ok so I used to work in the Baton Rouge La district and I want to let you know how RAC puffs up those numbers to look good.
We will have a "sales event" that is letting customers start a new rental for just $10 down. That will make their due date come up in a week or week and a half. When they come due and they dont pay we go pick it up. Well you think about that amount of returns over a region. Well when the region is down AOR, then we have another "sales event" for $10 down to make up for all of those returns we did. Most of the time the managers are forced to " show up" for the event, which is to say get deliveries, or they will be written up. So by that pressure 95% of managers make up agreements to show they have deliveries, so they wont be in trouble. If those agreements are made up, then they get returned with no income. All this just to show a number. So same store sales is a bogus measure. If you dont believe me, go find the division and region that does the most deliveries and audit them. You will find out it is all inflated. And to protect upper management, they will say we never condone or approve this, of course NOT. It is understood for this to happen so the investor sees we are GROWING. Again do your own research.

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Post ID: @11ydLoi5

18 replies (most recent on top)

There will be a ton of fake Ds this coming week

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Post ID: @11ydLoi5-Dkhz

I see what you are talking about when I Googled rcii, the first page show EPS /revenue info and percentage, NOT a good trend. Went from 80% to -5???? LOL!

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Post ID: @11ydLoi5-msxi

I would be very cautious when buying rcii, they don't have good track record of telling the truth. They lie to coworkers, potential businesses partners that come to the rescue so what makes you think they will tell the truth to investors?

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Post ID: @11ydLoi5-mems

Cheating on which metrics? Same store sales were still pretty strong. I don’t know why they missed earnings with a stronger sales number

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Post ID: @11ydLoi5-mhws

Investors, take your money and run from this Company, this is just one of many earnings misses to come. As stated before the percentages do not make sense. Stores need to have sustainable income, above 90k per month. They don't have the talent pool to run stores that big, cheating on store metrics only hides problems. Mitch and his minions lack the patience for real change. Good luck and best wishes!

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Post ID: @11ydLoi5-mswt

Rac will miss earnings big time, stores have to be 800+ aor to be profitable. They can't keep up with the increasing cost of doing business, their revenue is stuck in the year 2007. The urban stores have too much competition and they can't keep up with store lease or labor labor expenses.

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Post ID: @11ydLoi5-gceb

Be prepared invstors, all of these fake agreements will reveal a drop in revenue. November 6th will show that these practices talked about here are just a show. You heard it here first.

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Post ID: @11ydLoi5-fpsm

This has been going on for years now and there will never be a positive change.

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Post ID: @11ydLoi5-edho

Correct, you are on the right track.

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Post ID: @11ydLoi5-8eub

Isn't it if the merged store takes on 5% or more of the closed store then it's not included in the same store base for some set time (I think one year)? If that's the case, then the merged stores shouldn't really impact same store sales.

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Post ID: @11ydLoi5-8vfo

You need to research how a merger or closed rac location is reported not reported or when reported on sss reports. Look how the total revenue went for being up 800% to just a few, how and why? Fudged sales and credit is only one indicator on how rac does business. One day you look up and your investment is gone. Rac is posting great numbers but once the cost cutting effects are gone you need "real" growth to survive.

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Post ID: @11ydLoi5-8dhk

To anonymous,
You are understanding this more than most. Same store sales (SSS, or also referred to as Comps) are based on Revenue for a time period this fiscal year “COMP”ared Revenue for the same time period last year. So, having BTB events or war rooms, etc will result in an extremely heavy sales (delivery) day.. by getting these sales and returning them the week or week and a half after sold does not falsely inflate SSS.

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Post ID: @11ydLoi5-7ogm

The site took down the post mentioning collecting a document about all the shenanigans, I was going to send something but anyone know that email address?

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Post ID: @11ydLoi5-2zle

I will be sending specific examples

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Post ID: @11ydLoi5-1gsj

Here is a great place to start, look at the Receipt Audit Trail for high delivery stores starting today. Look at the transaction audit trail for today. Bogus agreements going up all over. Then pick any Saturday and focus on all the extensions done between 3 and 6pm so a store can get the 6.9% delinquency number.

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Post ID: @11ydLoi5-1yqd

That is exactly what happens in the entire Company and anyone that does not play ball is let go. Ask anyone that works in AP, their hands are tied because the rd is usually the biggest cheater of them all. 35 Ds on a btb day with no advance prep? All he/she does is show up and get 30 Ds? Wow! Same thinkg on credit, charge it off early , retype it or extend it. You will never see that direction in an email, but you will be directed to do it.
By the time the same store sales show what is really going on next year it will be too late for the investor. Protect your hard earned money and buy a stock where they can't fake a sale. Walmart can't fake a sale, Macy's, TJ Maxx, etc.

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Post ID: @11ydLoi5-1qkg

I am from Tennessee and it happens here too.
If they are a previous paid in full customer we give the free time so $0 down. It will register as a delivery or sale then a return. So it shows as a sale, registers that same store sales are up, but those are returned in 2 weeks or so. So no real growth, just a sale. I know managers who put their own $ in the register so they have that sale as to not be in trouble. The indicator to watch in each store is true revenue growth and average per agreement growth.

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Post ID: @11ydLoi5-sdt

I don't get how this leads to same store sales as being a bogus measure? So your AOR is down, they have a sales event for $10 down, do they actually have an agreement where they collected the initial $10 or is that made up? If it's made up, then there's no sales to be recognized? Or what's booked as sales? Is there anything outsiders can look at to see some signs of this?

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Post ID: @11ydLoi5-alq

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