Pandemic increases business for area pawn shops in unexpected ways

Pandemic increases business for area pawn shops in unexpected ways

AMARILLO, Texas (KFDA) - The pandemic has brought more business for area pawn shops, but in ways that no owner would have expected.

“Yeah, it’s been kind of wild. I’ve never seen it, and I’ve been doing this a long time,” said Scott Reynolds, manager of Damron’s Pawns.

Reynolds has been in the pawn shop business for nearly two decades and says the fact that people are not pawning items right now is unheard of.

“It kind of surprised us, because our sales have really gone up. We really thought the loan business would go up but actually the sale. Especially March, our sales were 50 percent up," said Eddie Morton, owner of Golden Nugget Pawn Shop.

A pawn shop in Hereford is experiencing the same thing. No one is asking for a loan or selling their products, everyone is buying items.

Morton says, in Hereford, it could be because fewer people are traveling to Amarillo to shop.

“People are staying locally, they’re not going out of town. They’re shopping locally, so I think that’s helped our sales a lot,” said Morton.

Typically, pawn shops would see people trying to get quick cash this time of year to use for summer vacations.

“About income tax season they start paying out their stuff, and then usually we see a trend of them coming back about mid May, where they are trying to get money for vacations and stuff like that. We haven’t seen that trend this year as much,” said Reynolds.

Although still making a profit, some shops are worried about the future with the lack of loans being given out now.

“When we don’t make a lot of loans, down the road we wont have a lot of merchandise to sell either. We won’t be getting the interest we normally get, and we won’t have the goods to sell like we normally do,” said Morton.

Morton worries it might take as long as four months for business to even out for pawn shops.

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