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Wal-Mart Changes Its Name. What Does that Mean for Pawnbrokers?
Did you hear? On December 11, 2017, Walmart officially dropped “stores” from its legal name. It’s an interesting twist in a year in which omni-channel retailers learned to love the physical as well as the digital again.
Competing with Amazon means changing the brick & mortar’s way of doing business. No industry is safe, not even pawn.
Pawn, the oldest industry, is faced with how to connect with Millennials and GenZ. Walmart and Amazon offer mobile services and a full digital relationship. With the continued onslaught of new credit and financial mobile offerings that FinTech startups are investing in, pawnshop competition will continue to rise.
Customer acquisition is being disrupted and pawnbrokers face strong headwinds in acquiring this new age of customers.
eCommerce has become a backbone to many pawnbrokers – operators are setting up storefronts on eBay, Amazon, and Buya. You see, traditionally pawnbrokers relied on coincidence to sell items. It’s hard to predict what loan is going to default and when its going to happen. Ever had skis come out in June or a lawnmower in December? Counting on coincidence to sell inventory through your traditional brick & mortar store front is history.
A NEW GENERATION OF PAWNBROKERING
The New Gen. Pawnbrokers, like former VP of Cash America, Tony Twist, exemplify a transition that is taking place in the pawn industry. TNT has its own mobile application where its customers can make payments on layaways and loans, receive notices and reminders, and can shop 24/7. “The unique nature of pawn shopping is that new items get priced each day. I can buy on mobile and pick up in store, just like I can at Walmart,” says Tony.
Customers don’t understand why pawnshops don’t have better technology – mobile technology. “Most pawnshops are lucky if their software gives them a new release annually. ANNUALLY! Can you imagine competing with Amazon and Walmart and having to wait a full year for something new and competitive?” says Bravo CEO, Tally Mack.
Tony says younger customers are walking through their doors. “We were worried that customers wouldn’t need to come into our store as frequently, but actually, mobile customers actually come in more.” Again, this matches what Walmart reports.
Pawnbrokers have options, and one thing is clear. Competing with Amazon and Walmart requires relevant technology – Cloud technology, eCommerce, omni-channel, mobile, Product Listing Ads (PLAs), inventory and fulfillment management, task management, accurate product data pricing and more. If any of this sounds foreign, it’s not too late to learn.
The bottom line – Today’s mobile and eCom consumers don’t put up with sloppy effort pricing and pictures. They swipe and soon another retailer is there, happy to take your business and offer a better online retail experience.
Interested in learning more about how Bravo helps pawnbrokers compete with Amazon and Walmart?
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