Lend a hand: Increased retail sales will benefit pawn shops as consumer confidence rises

IBISWorld’s industry research report on Pawn Shops contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.


Industry Threats & Opportunities

  • Declining gold prices and the recovering economy will slow industry revenue growth
  • The rising rate of defaults helped stores collect higher transaction fees, spurring profit
  • Low-income households largely drive industry demand because they are the main customers of pawn shops

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    Industry Analysis & Industry Trends

    The Pawn Shops industry has declined over the past five years amid falling gold prices and the recovering economy. During the five-year period to 2016, lower gold prices and falling unemployment led to fewer defaults as the US economy returned to growth. Fewer stores are consequently able to collect higher transaction fees and generate additional earnings by selling collected collateral. As the economy continues to recover, industry revenue is anticipated to continue declining; however, declines are expected to slow over the next five years as gold prices settle...

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    Industry Report - Industry Analysis Chapter

    The Pawn Shops industry has declined from recessionary highs over the past five years. The gold rush, coupled with persistent unemployment, led to a boom in demand for the Pawn Shops 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 2.2% over the five years to 2016. Revenue is nonetheless posted to rise a modest 1.0% over 2016 to reach $5.6 billion, as the price of gold increases and access to credit is restricted.


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    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..

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    Industry Products

    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
    Industry Activities
    Consumer lending (secured loans with personal property used as collateral)
    Used goods retailing
    Appraising items for purchase or pawn

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Consumers

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

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • 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
    Major Companies
    EZCorp Inc.Cash America International Inc.
  • Table: EZCorp Inc. - financial performance
  • Table: Cash America International Inc. - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Pawn Shops Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • World price of gold (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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 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.

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