The U.S. pawn shop market is estimated to be valued at US$ 2.6 Billion in 2021, according to a report published by Coherent Market Insights.
Key players operating in the U.S. pawn shops market are First Cash Financial Services Inc., DFC Global Group, EZCORP, INC., and Borro Private Finance. According to Coherent Market Insights, First Cash Financial Services Inc., a U.S. based company majorly operating in retail sales of merchandised goods. accounted for 35% share of the U.S. pawn shop market in 2018, followed by EZCORP, INC., Buckeye Pawn Shop, and others. The company is actively focusing on strategies such as mergers and acquisitions to remain competitive in the U.S. pawn shop market. For instance, in September 2016, First Cash Financial Services, Inc. merged up with Cash America International, Inc., a retailer based in U.S. operating 859 pawn shop in the United States to form FirstCash, Inc. wherein both the companies are combined in a tax-free, all stock transaction. Through this merger, FirstCash will become one of the largest retail store pawn chains in Latin America and North America with over 2,000 retail pawn stores throughout the regions.
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Browse 50 market data tables* and 40 figures* on “Pawn Shops Market” – U.S. Forecast to 2028.
Key Trends and Analysis of the U.S. Pawn shop Market:
- Key players in the U.S. pawn shop market are focusing on strategic acquisitions to increase their market share by expanding their business. For Instance, in June 2019, EZCORP, INC., a leading provider of pawn loans in the North American and Latin American countries announced the acquisition of seven pawn stores belonging to Metro Pawn in Nevada, U.S.
Key Takeaways of the U.S. Pawn shop Market:
- Key players are adopting strategies such as partnerships and mergers and acquisition to launch new stores and strengthen their position in the U.S. pawn shop market. For instance, in 2017, EZCORP, INC., a leading pawn company in the U.S. and Mexico, announced the acquisition of GuatePrenda MaxiEfectivo's 112 pawn stores in Latin America. GuatePrenda is a pawn shop that deals in garments, jewelry and electronic products. The acquisition was aimed to expand the company’s presence in Latin America.
- Major players operating in the U.S. pawn shop market include First Cash Financial Services Inc., EZCORP, INC., DFC Global Corp, Picasso Pawn, Buckeye Pawn Shop, Borro Private Finance, Welsh Pawn, Luxury Asset Capital, Beverly Loan Company, and Big Store Pawn Shop
U.S. Pawn shop Market - Impact of Coronavirus (COVID-19) Pandemic
The World Health Organization declared the Covid-19 outbreak a global pandemic, as the virus spread to almost 170+ countries by the end of March 2020 with its initial outbreak in Wuhan, China. The pandemic affected various sectors including educational sector, small and big businesses, and caused a drop in the national economy. Flight cancellations, restrictions on outdoor activities, slowdown of supply chain were some of the effects observed as nationwide lockdowns and social distancing measures were imposed to limit the spread of infection.
The pandemic also had an impact on pawn shop businesses. Due to restrictions on social mass gatherings, people spent most of their time at homes. A declination in domestic expenditure was observed as people were not visiting restaurants, planning vacations, visiting movie theatres, etc. which helped in minimizing the need for short term loans. According to Cyndee Harrison (director of marketing and public relations at the National Pawnbrokers Association), loans fell by around 40% as reported by the members of the association for the year of 2020.