“Before Placer, we never had insight into our competitors' traffic unless we physically observed it. Now, we can see how they perform and make operational changes right away. One month after extending our store hours to match theirs our loan balance grew by 15% at one store and sales by 10% at another, and the results continue to improve. Placer works.”
-- Ryan Meyer-Thovson, Director of Business Operations
The Challenge
A successful chain of pawn stores seeks to continue strong store performance
Founded in 1991 with a small store in Robbinsdale, MN, Pawn America has grown into a successful chain across two states and is regularly recognized as one of Minnesota’s fastest-growing companies. Their commitment to community is just as strong as their business focus, winning the Jefferson Award for Corporate Philanthropy for initiatives like Kids Feeding Kids and for their work with the Boys & Girls Clubs. Intent to continue their strong record of growth, Pawn America asked Ryan Meyer-Thovson, Director of Business Operations, to use Placer data to understand performance trends at each store and to look for opportunities of improvement.
The Solution
Placer data on competitor and co-tenant store traffic suggests remaining open one hour longer
The team began by analyzing foot traffic at various times of the day across its stores and competitors, starting at one of its most highly trafficked locations, Roseville, MN, which closed at 7pm and sat across from a competing pawn store that closed at 8pm. After comparing the business’ visits trends, the team noticed that Pawn America dominated traffic until 6 PM (one hour before Pawn America’s closing time), but that the competing store started to perform well from 6-7pm and into their competitor’s closing time of 8pm.
Learn more about Hourly Visits
Pawn America repeated this analysis at another store: their Fridley, MN location. Unlike the Roseville store, which had a competitor across the street, this location was surrounded by big-box stores like Dollar Tree, Petco, and Menards (all of which were open until 10 PM), prompting the team to consider whether extending the closing time of the store could draw strong traffic from big box shoppers nearby. Placer’s visit metrics report showed that traffic surged at nearby retailers after 7 PM, giving the team the confidence to also extend operating hours to 8pm at this location.
Learn more about Market Landscape
After preparing operationally, Pawn America extended their hours from 7pm to 8pm, updating all online listings and putting up signs in front of the store.
The Outcome
SUCCESS: Extending closing times boosts loan balances 15%, overall sales 10%
The results were immediate. By using Placer data to justify extending store hours from 7pm to 8pm, Pawn America saw significant gains in both loan balances and retail sales across both locations. At the Roseville store (located across the street from a competitor) Pawn America’s loan balances increased by 15% in just the first month, while the Fridley store saw its biggest September for jewelry sales and an increase in total retail sales of more than 10%. Monitoring weekly traffic after the change also showed that Pawn America gained significant traction in the evening hours after the change.
Using near real-time data to make operational changes has transformed Pawn America’s performance, allowing them to better compete with nearby competitors and contribute to the success of the centers around them. They’re continuing this strategy at others stores, expecting continued growth.
