We're gaining 6,000 to 8,000 customers per week because of the lack of commitment the consumer has to make.
Robin Loudermilk, CEO, Aaron's

File Photo RTO Online

Robin Loudermilk, CEO, Aaron's

Aaron's (NYSE:RNT) CEO Robin Loudermilk appeared on Fox Business News Friday morning. Loudermilk said Aaron's customer base is growing at a 15-20% annual rate due to the lack of traditional retail consumer credit.

"What we're seeing is tremendous trade-down among consumers right now," Loudermilk said. "They are also not wanting to make the commitment because they don't have the cash or the credit availability."

Loudermilk said Aaron's has approximately 1.2 million customers now and is gaining 6,000 to 8,000 customers per week due to consumers' desire to avoid long term credit commitments and the outlay of large amounts of cash.

Loudermilk, who took the reins of Aaron's in June 2008 (see story), said that surprisingly, Aaron's is seeing stronger growth in higher unemployment areas compared to stores located in lower unemployment areas.

CFO Gil Danielson appeared on Fox News last week (see video). Danielson said consumers are paying closer attention to their cash and conserving available credit. "They don't want to use all of their credit if they have it."

Loudermilk appeared on Fox News in October 2008 to discuss the recession-resistant nature of the rental business (see video).