Amidst the growing trend of Americans relying on Buy Now, Pay Later apps to purchase food and other basic necessities, longtime retail staple “Rent-A-Center” (RAC) is starting to really feel some pain as Americans simply can no longer afford to pay for these items.
As the name implies, the store offers a wide variety of items that are not paid for in full upfront, but technically “rented.” The customer setups a payment plan and pays interest as a lease until the deal wears out, and then the customer finally owns the item. This is similar to a mortgage or expensive car payment. People who shop at this store, or other outlets such as Fingerhut, will end up substantially paying more for the item had they paid for it upfront.
However, RAC’s stock recently fell as much as 20% on September 30th, reported by ZeroHedge, pushing the stock value back down to April 2020 levels.
According to ZeroHedge, ‘the floor fell out after the rent-to-own store chain operator’s adj. EPS forecast for the third quarter fell far short of analyst estimates, lowered Q3 guidance citing macroeconomic headwinds – which impacted retail traffic and customer payment behavior – and most ominously, the company didn’t reaffirm its 2022 guidance, prompting brokers to cut their targets on the stock.’
Moreover,
- RAC expects Q3 adj. EPS of $0.85-$0.95, missing consensus estimate of $1.16. Its prior outlook was $1.05-$1.25.
- Q3 revenue is projected to be $1B-$1.02B vs. consensus estimate of $1.03B. Its earlier forecast was $1B-$1.055B.
On top of that, the company’s CFO, Maureen Short, recently stepped-down from her position.
External economic conditions have continued to deteriorate over the past few months.
This has affected both retail traffic and customer payment behavior, so we are updating third quarter guidance to reflect the impact of those trends on our business.
RAC CEO Mitch Fadel stated
‘What happens next? Why those same lower/middle consumers who can’t even afford to rent stuff due to soaring prices, are about to lose their jobs too as the Fed and the puppet Biden regime push the US economy into all-out collapse,’ ZeroHedge concluded.
And with interest rates rising while the Federal Reserve makes sure that inflation still stays elevated, renting will only cost more.
AUTHOR COMMENTARY
He that putteth not out his money to usury, nor taketh reward against the innocent. He that doeth these things shall never be moved.
Psalm 15:5
These RAC business models are so incredibly stupid, and you’d be a fool to ever get involved with one. Either pay for it upfront at full price or not at all. The people who use these services will pay triple and quadruple the marketed retail price.
Notwithstanding, the evidence of American’s spending addiction and unquenchable covetousness rears its ugly head again. Americans cannot stop buying garbage, and now they have exhausted themselves so much they can no longer afford to rent.
This demonstrates how so many people will be gladly accept the “you’ll own nothing and be happy” lifestyle by 2030:
In our city we don’t pay any rent, because someone else is using our free space whenever we do not need it. My living room is used for business meetings when I am not there.
Once in awhile, I will choose to cook for myself. It is easy – the necessary kitchen equipment is delivered at my door within minutes. Since transport became free, we stopped having all those things stuffed into our home. Why keep a pasta-maker and a crepe cooker crammed into our cupboards? We can just order them when we need them.
The WEF wrote in an essay about 2030 life
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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“In our city we don’t pay any rent, because someone else is using our free space whenever we do not need it. My living room is used for business meetings when I am not there.
Once in awhile, I will choose to cook for myself. It is easy – the necessary kitchen equipment is delivered at my door within minutes. Since transport became free, we stopped having all those things stuffed into our home. Why keep a pasta-maker and a crepe cooker crammed into our cupboards? We can just order them when we need them.“
The WEF wrote in an essay about 2030 life
Whoever wrote that has lost all their senses. I have never heard such ridiculousness in my entire life.
Riches of this world ruin mankind.
Thank you for this article
And a message to the author :
Ruth 2:12
The LORD recompense thy work, and a full reward be given thee of the LORD God of Israel, under whose wings thou art come to trust.
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