Brett Hondow/Depositphotos.com
August 18, 2025
Will Pawn Shops Persist as a Back-to-School Shopping Destination?
When one thinks of the (now expanding) back-to-school shopping season, certain retailers and retail segments come to mind: Walmart, Amazon, Target, Dollar General; Department stores, dollar stores, warehouse clubs, and e-commerce outlets.
However, as CNN Business recently revealed, a seemingly unlikely back-to-school shopping destination is increasingly on consumers’ radars: pawn shops.
The outlet’s Vanessa Yurkevich noted that Americans seemed to be heading to pawn shops to save money on BTS purchases, with families expecting to lay out 2% less than last year on back-to-school buys, according to National Retail Federation data.
“With the way the economy is right now, people realize that they can go to a pawn shop anywhere in the United States, and they can save tremendous amounts of money,” Les Gold, owner of American Jewelry and Loan in New York City, said.
“People are struggling more, and that’s why more people are looking for better deals. They don’t have the money, and they still want their children to have a laptop,” he added.
Pawn Shops Seeing Growth in Apparel and Electronics, Including Laptops, Signaling Back-to-School Spending on the Rise
According to data provided by EZPawn, a chain with nearly 500 locations spanning the U.S., merchandise sales ticked upward by about 4% last quarter.
More significantly, growth tied to increased sales in BTS categories such as boots, shoes, electronics, and laptops more specifically was in evidence.
One major factor which could be spurring sales and interest at pawn shops is a lack of tariffs, according to USA Pawn, which operates six locations in Mississippi.
“Tariffs are not a factor here at our company simply because our customers are the ones that supplies us with the merchandise,” said Renita Parker, a regional director for EZPawn.
Pawn Shop Business Could Be Signaling Economic Warning Signs
Coinciding with a notable swing in customers trading in their scrap gold — “We’ve seen a big jump probably in the last three weeks. I feel that they’re selling their jewelry and gold to buy school supplies,” said Nick Fulton, managing partner at USA Pawn — overall booming business at the nation’s pawn shops could be an ill omen for the American economy as a whole, as Yurkevich underscored.
“You can’t imagine what’s going on in the economy right now unless you live in the pawn shop. Pawn shops help these people survive by either loaning them money on their merchandise, or selling them merchandise less than if they went anywhere else,” Gold said.
“In reality, the economy isn’t as good for my clientele, they’re struggling. We’re not talking about the people that are getting a paycheck once a week and they’re surviving. A lot of the people that we deal with don’t get a paycheck every week. They’re surviving day-to-day,” he added.
Discussion Questions
Will pawn shops increasingly be seen as a top-of-mind BTS shopping destination? How tied to economic conditions is this trend, and will it persist?
Is the “trading down” effect currently driving spend to dollar stores the primary motivator for pawn shop BTS spending as well? What are the most obvious differences in consumer motivation or makeup?
Poll
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Georganne Bender
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This is another coping strategy being deployed by households that have budgetary pressures, and which want to make their dollars stretch further. It is basically an extension of the rise of the circular resale economy, although pawn shops can have lower prices. Their continue success depends on both a strong supply of pawned goods and healthy demand: both will persist for as long as financial pressures remain.
Let’s back up a minute: I really doubt – and there’s nothing in the story to make me think otherwise – that pawn shops are a top-of-mind BTS shopping destination. (I mean…really!) So it’s an oddball choice that’s perhaps seeing a less trvial share than it used to. That doesn’t bother me much, what would bother me is seeing pawnshops are an increasing source for borrowing. Which is to say; I’m not bothered by how many goods are going out of these places but rather how much is coming into them.
I can see pawn shops as a place to sell jewelry and other expensive items to get money for school supplies, but as a back to school destination? Not so much.
You can buy new, low cost computers with payment plans on QVC, and Chromebooks at Best Buy for $129. Both of these options seem like a better choice to me.
In economic downturns, BTS shopping may become more popular at pawn shops as consumers seek more affordable alternatives.
However, their appeal will diminish in strong economic climates as consumers migrate towards traditional retailers and online shopping. Inflation has stabilized, consumer confidence is increasing, the stock market is booming, which means 401Ks are growing, and new blue collar jobs are being created.
The longevity of this trend will be determined by a number of factors, including the broader economic landscape as well as consumer behavior shifts towards sustainability and financial responsibility.
My outlook is that pawn shops will continue to thrive in lower income neighborhoods but lose their popularity elsewhere.
This is more like survival commerce. Pawn shops are becoming the informal banking system for America’s gig economy workers. Income unpredictability requires retailing that matches the volatility of your cash flow (without a credit profile and a steady income stream). Pawn shops have identified an underserved segment that mainstream retailers have ignored.
When I think back to school, pawn shops don’t seem a logical choice. But, in terms of generating cash for making those school supplies purchases elsewhere, perhaps that makes some sense, along with perhaps some items needed for school.
Will a pawnshop become a BTS destination? Short and long answer- NO.
Granted, households are under enormous economic pressures right now, especially lower-income households. Inflation continues to be an issue; employment numbers indicate companies aren’t hiring at the moment. While this may change depending on how the administration’s policies land, for BTS 2025, it’s rough for many households.
Reality check- Pawn Shops are 100% opportunistic shopping experiences. I can’t take my kids’ pre-school supplies checklist to the pawnshop and expect to walk out with much of anything that I’d need. Maybe a few high-ticket items like electronics??? For the staples: binders, pencils, book bags… families are going to find outlets with more stable inventory to get what they need- they’ll pick a dollar store over a pawn shop every time.