Crisis hits Russian pawnshops

Russian pawnshops are experiencing an inexplicable serious system-wide crisis, a research suggests.

The pawnshop market in Russia is facing a drop in profits along with a decrease in the number of participants, the portal said in a survey. The remaining players’ revenue and portfolio indicators are nearly stagnant. At the same time, there is a significant increase in consumer lending in the market.

In 2017, only 49% of Russian pawnshops showed revenues. Overall, they earned RUR 29.744 bln ($453.4 mio) – 5.5% more than in 2016, but 86% lower than in 2015. Pawnshops in St. Petersburg and Chelyabinsk showed the highest revenues. The net profit on the market fell by 57% to RUR 2.175 bln ($33 mio). A year earlier, net profit rose by 20%.

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