Pawn Shops Boom Despite Economic Downturn

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By KBJR News 1

Many businesses continue to go under during these uncharted economic times, but one type of business in particular has experienced an increase in sales.

Pawn shops across the nation have reported seeing their customer base expand dramatically as LeAnn Wallace reports.

From the time the economy began to go down, business at many pawn shops started to go up.

"We probably have had about a 20% increase in foot traffic in the last probably two years."

Duluth Pawn America's Assistant Manager Andy McKinnon says pawn shops have traditionally been pegged as a place to go just when you need some extra cash, but that stigma has recently changed.

"Now we're more of a retail store then anything, and when you can go to a store and buy it for 100 bucks, you can come here and buy it for 65, 70."

McKinnon says the demographic of their customer base has also expanded to new shoppers and sellers.

"It's my first time in here, so I thought I'd shop around and see what's available," says Kendra Sande.

And although more people are buying than selling, many people still use the pawn shop as a way to put some fast cash in their wallet.

With an increase in the price of gold and silver, many people have been going through their jewelry boxes for items to sell.

"Gold's up, the market has been up on that for the past two years, it hit 990 two months ago, right now it's about 910."

And although many use pawn shops to help pay for the necessities...

"Food, diapers, they need money for rent."

Others sell for recreation.

"Some people just say fun money, and that's what you hear a lot, people just sell their stuff because they don't need it anymore."

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