Acima, a unit of Upbound Group, has announced that it will serve as the exclusive lease‑to‑own provider for Bob’s Discount Furniture’s 213 stores across 26 states and its online platform, a move that expands Acima’s footprint into a major national retailer.
The partnership gives Bob’s customers access to Acima’s flexible lease‑to‑own solutions, allowing purchases without perfect credit and the option to own items after a set number of payments or through early purchase. The deal is expected to increase Acima’s transaction volume and revenue, reinforcing Upbound Group’s strategy of scaling its Acima platform to serve underserved consumers.
Financially, Upbound Group reported $4.3 billion in revenue for fiscal 2024, with the Acima segment contributing an estimated $164 million and growing 18% year‑over‑year. The partnership is positioned to accelerate that growth by providing a dedicated channel for Acima’s LTO products in a high‑traffic retail environment.
Acima’s CEO Tyler Montrone said the exclusive arrangement will streamline the shopping experience and drive higher conversion rates for Bob’s, while Bob’s COO Ramesh Murthy highlighted the partnership’s role in simplifying payment options and focusing on core retail strengths. Upbound CEO Mitch Fadel noted that the deal aligns with the company’s omni‑channel strategy and underscores Acima’s role as a leading provider of lease‑to‑own solutions.
The partnership also comes amid significant legal and regulatory scrutiny of Acima’s business model. The company is currently facing litigation from the Consumer Financial Protection Bureau and investigations by the New York Attorney General and a coalition of 40 state attorneys general. These challenges could impact Acima’s operations and the long‑term viability of its LTO model.
The announcement signals a strategic win for both companies, but investors should weigh the potential revenue upside against the ongoing regulatory risks that could affect Acima’s future growth.
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