Not for sale: Industry revenue will decline amid falling gold prices and the recovering economy

The Pawn Shops industry has declined over the past five years amid falling gold prices and the recovering economy. The gold rush, coupled with persistent unemployment, led to a boom in demand for the industry through 2012. However, as economic conditions continued to improve in subsequent years, both unemployment and gold prices began to fall, causing the industry's decline. Moving forward, low-income households will continue to comprise the industry's core consumers, keeping sales buoyant and profit margins relatively stable. Nevertheless, the improving economic outlook is forecast to temper industry demand, as consumers who were previously forced into pawn shop patronage will gain employment and opt for alternative financing sources...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 12-17
-2.4%
Forecast Growth 17-22
Profit
Employment
26,896
Businesses
11,190
What Our Customers Say

Industry Threats & Opportunities

  • Declining gold prices and the recovering economy will slow industry revenue growth
  • Major players have undergone acquisitions to expand their market reach and limit competition
  • Low-income households will continue to comprise the industry’s core consumers
  • Industry Report - Industry Analysis Chapter

    The Pawn Shops industry has declined over the past five years from previous highs experienced prior to the five-year period. The gold rush, coupled with persistent unemployment, led to a boom in demand for the industry through 2012. However, as economic conditions continued to improve in subsequent years, both unemployment and gold prices began to fall, causing the industry’s decline. Since the industry operates countercyclical to the overall economy, industry revenue is anticipated to decline at an annualized rate of 2.4% over the five years to 2017. In 2017 alone, revenue is expected to decline 0.2% to reach $6.1 billion, as the price of gold increases and access to credit is restricted...purchase to read more.

    Additional Insights for the Pawn Shops Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pawn Shops Industry are

  • Attractive product presentation
  • Ability to control stock on hand
  • Licensing
  • IBISWorld analysts also discuss how external factors such as Poverty rate and Access to credit in the Pawn Shops industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What is the Pawn Shops Industry?

    Companies in this industry offer secured loans to individuals, who then provide items of personal property as collateral. These companies also retail used goods that are often acquired from unpaid loans or purchased directly from consumers.

    Industry Products
  • Secured loans for personal collateral
  • Merchandise sales
  • Other sales
  • Industry Activities
  • Consumer lending (secured loans with personal property used as collateral)
  • Used goods retailing
  • Appraising items for purchase or pawn
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Poverty rate
  • Access to credit
  • Consumer Confidence Index
  • National unemployment rate
  • World price of gold

  • Current Performance
  • Demand for loans and retail services
  • Profit and participation
  • Industry developments
  • Chart: Revenue Growth

  • Industry Outlook
  • Improving economy
  • Slowing growth
  • Table: Pawn Shops Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pawn Shops Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Consumers

  • Products & Services
  • Merchandise sales
  • Secured loans for personal collateral
  • Other sales
  • Chart: Pawn Shops Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Generation X
  • Baby boomers
  • Individuals aged 63 and older
  • Generation Y
  • Chart: Major Market Segmentation for the Pawn Shops Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Pawn Shops

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pawn Shops Industry

  • Industry Globalization
    EZCorp Inc.Cash America International Inc.
  • Table: EZCorp Inc. - financial performance
  • Table: Cash America International Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pawn Shops Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pawn Shops Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • World price of gold (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big-Box Retailer
  • A retail store that is differentiated by its sheer size and large range of products, including electronics, households goods and other consumer products.
  • Collateral
  • An object that is pledged as security for repayment of a loan.
  • Pawn Loan
  • A loan that is secured by collateral held by the pawn broker (or pawn shop).
  • Why buy this report?

    IBISWorld’s Pawn Shops Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Pawn Shops industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pawn Shops:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pawn Shops market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pawn Shops, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear