NEW YORK, NY -- (Marketwire) -- 06/15/12 -- Globalgroup Investment Holdings, Inc. (PINKSHEETS: GIHI) announced yesterday that they are targeting the $7 billion rent-to-own (RTO) industry, with their GlobalLOK payment code software. The rent-to-own market is dominated by three companies, EasyHome (TSE: EH), Aaron's, Inc. (NYSE: AAN) and Rent-A-Center (NASDAQ: RCII).
The (RTO) industry is composed of dealers who rent furniture, electronics, major appliances, computers, wheels and tires, musical instruments, jewelry and other products with an option to buy. There are approximately 8,600 stores in all 50 states and Canada. RTO serves 4.1 million households at any given time in the year. It is estimated that the RTO industry currently serves more than 6 million customers a year. Currently, electronics make up nearly 25% of the RTO business with computers as one of the newest categories helping to fuel the growth.
GlobalLOK assists RTO clients in reducing their theft and payment defaults, which currently account for lost revenues of approximately $140 million annually. Benefits include improved collection ratios, increased returns on assets, and reduction in overhead used to recover computers from delinquent customers.
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