Home Goods Financing Market Size
The market size of the Canadian RTO industry for the years 2010, 2015, and 2019 are estimated to be CAD$215.02 million, CAD$234.8 million, and CAD$214.1 million, respectively.
OVERVIEW AND MARKET SIZE
- The rent-to-own (RTO) industry comprises vendors who offer new or used home furnishings, appliances, computers, and electronics.
- Consumers are not required to make immediate payments for goods before receiving access to them. Instead, by signing a contract that entitles them to make periodic payments, they gain immediate possession of the items.
- Depending on the terms of the contract, they typically gain ownership of such items within 1-3 years.
- The consumers in the RTO industry are primarily those with financial disadvantages. Key players in the industry, such as EasyHome and Aaron's thus advertise their services as such.
- The global RTO market had annual revenues of $8.5 billion in 2012, $7.9 billion in 2014, and $8.6 billion in 2015 and 2016.
- As of 2015, there were over 9,900 RTO stores in 50 US states, Canada, and Mexico.
- The market sizes of the RTO industry in Canada were estimated to be CAD$215.02 million, CAD$234.8 million, and CAD$214.1 million, in 2010, 2015, and 2019, respectively.
We obtained the revenue of the global RTO market from 2012 to 2016 from APRO. However, we could not find similar details for the Canadian market and the specific years requested. We thus triangulated the information to obtain the size of the Canadian RTO market for the years 2010, 2015, and 2019, as provided in the section below.
Also, we used sources that are beyond Wonder's standard two-year timeframe for sources to because the request requires financial information that dates as far back as 2010.
- EasyHome generates 60-70% of the RTO market size in Canada. For this report, we have assumed EasyHome's market share to represent the average of 60% and 70%, i.e., (60% + 70%) / 2 = 65%.
- We also assumed this market share to be constant for years 2010, 2015, and 2019 because EasyHome was and still is the market leader of the Canadian RTO industry.
- As such, we determined the market sizes of the industry using the revenues of EasyHome in 2010, 2015, and 2019 to represent 65% of the RTO industry in Canada.
- In 2010, EasyHome's annual revenue was CAD$139,767 = 65% of the market size.
- The total market size the Canadian RTO industry in 2010 = (CAD$139,767 x 100%) x 65% = CAD$215.02 million
- In 2015, EasyHome's annual revenue was CAD$152,605 = 65% of the market size.
- Thus, the total market size the Canadian RTO industry in 2015 = (CAD$152,605 x 100%) x 65% = CAD$234.8 million.
- In 2019, EasyHome's annual revenue was CAD$139,175 = 65% of the market size.
- The total market size the Canadian RTO industry in 2010 = (CAD$139,175 x 100%) x 65% = CAD$214.1 million.