Pawn Shops in Australia - Industry Market Research Report

Pawn Shops in Australia - Industry Market Research Report

Pawn Shops in Australia

The Pawn Shops industry has contracted over the past five years, due to the negative effects of the COVID-19 pandemic, mixed consumer sentiment, and higher unemployment in some years. Many operators have faced challenges due to a negative public image of the high interest rates many pawn shops charge on loans, the often low prices offered to customers for goods, and a perception that pawnbrokers take financial advantage of those in need. Some industry operators, including major player Cash Converters, have aimed to provide a more legitimate and professional image to counter some of these negative perceptions, and attempt to maintain their customer base. Cash Converters dominates the industry due to its strong branding, and more than 150 company-owned and franchised outlets across Australia. The company is estimated to account for more than 40% of industry revenue in 2021-22. The second-largest industry player, Cash Stop Gold, has over 20 stores and accounts for less than 5.0% of industry revenue.

Pawn shops offer secured loans to individuals, who then provide items of personal property as collateral. These firms also retail used goods that are often acquired from unpaid loans or are purchased directly from consumers. The industry excludes companies that only provide unsecured loans or only sell second-hand goods.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.