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  • Pawn Business Performs Well Across Most Economic Cycles

    Pawn Business Performs Well Across Most Economic Cycles

    Pawnshop Consulting Group with our global client base tracks a lot of Pawn data.

    We have been watching the current economic trends in the US Market with more skepticism than in the past, noting that the economic and political environment are volatile.

    Here is an economic trend analysis from First Cash and generally, it does follow the overall trends we are witnessing in the Pawn Industry across the spectrum:

    First Cash Trend Analysis, Pawn
    First Cash Trend Analysis


    AS illustrated in this analysis, First Cash saw Pawn Fee growth during the financial crisis of 2008 – 2012 grow approximately 20% across the board in the US operations.

    Retail Gross Profit remained relatively flat during those times, and they saw a slight decline in Fees during Covid (2020-2021) as noted.

    Conversely, Latin America saw solid Pawn fee growth during 2008-2012 as denoted. Retail Gross Profit also inclined slightly during that time as noted.

    Covid affects in the Latin American segment saw a slight Pawn fee increase during Covid, as well as a slight retail Gross Profit uptick.

    Pawn Shop Industry Trends in the USA

    It should be denoted that in general, the pawn trends in the USA closely resembled the results that First Cash reported for the time periods in the examples.

    For 2022 – 2023, Pawnshop Consulting Group is witnessing increases in demand for Cash in general (loans/buys) from the consumers.

    Along with this we are witnessing slight declines in loan yields, increases in default rates, flat to declining retail in general, growing inventory levels, and aging inventory is rising.

    AS we move further into the recession in the current political and global environment these trends will most likely continue.

    We are suggesting a cautious view on rapid PLO growth, more qualifying will remain paramount, and continue to focus on inventory yields VS gross profit, or margins.

    Aging inventory is the killer of cash as most of you DO know.

    Stay tuned for more updates from the Pawnshop Consulting Group, massive data collection and analysis IS in our wheelhouse!

    Jerry Whitehead

    Pawnshop Consulting Group, LLC.