Higher household costs are driving demand for quick cash at Ezcorp’s stores, which also are seeing affluent customers on the hunt for secondhand luxury goods

Pawn shops, particularly EZCorp, are seeing a surge in business as consumers grapple with inflation and economic uncertainty. EZCorp, which operates approximately 1,500 pawn stores globally, reported a 9% year-over-year increase in pawn loans outstanding and a 16% rise in revenue to $270 million in the most recent quarter. This trend indicates that pawn activity typically escalates when household budgets tighten, as pawn lending offers a short-term liquidity solution without credit checks or credit rating risks, making it accessible to consumers with limited access to traditional credit.

Driving this demand are several macroeconomic pressures. U.S. consumer sentiment dropped to a three-month low of 55.5 in early March 2026, influenced by rising gasoline prices due to Middle East conflicts and the high cost of living. The labor market also shows strain with a weak February jobs report. Additionally, gas prices have seen a recent increase, contributing to an earlier surge in cash demand compared to previous years. The closure of the Strait of Hormuz, a critical shipping route, has further pushed oil prices higher, exacerbating affordability pressures. Felipe Moreno, an EZCorp district manager, noted a firsthand increase in customers seeking pawn services for everyday expenses and even holiday shopping.

Pawn shops are also attracting a different segment of customers: those looking for secondhand luxury goods. EZCorp is observing growth in categories like luxury handbags, sneakers, and jewelry, with prices up to 50% less than major retailers. This reflects both value-driven shopping and a growing acceptance of resale, partly due to environmental consciousness. EZCorp's online catalog, launched in August, drew 1.5 million visits in its first full quarter, with jewelry, gaming systems, handbags, and sneakers being top product categories. Jewelry remains the most commonly pawned item, accounting for nearly 70% of EZCorp's U.S. loan balances, and record gold prices allow customers to secure more cash with fewer items. Analysts like Sucharita Kodali of Forrester view this increased pawn activity as a reflection of uneven economic conditions, creating a "K-shaped economy" where some households are in financial distress while others continue to spend.