Home ›› 14 Jan 2023 ›› World Biz
At a pawn shop in the west German city of Duisburg, a young woman hands over a mobile phone and in return gets a wad of cash to help make ends meet -- for a while.
Soaring prices mean the 120 euros ($129.20) now in Carrie-Ann's pocket will soon be gone, she says.
"I've got shopping to do, cat food, cigarettes for my mum," says the 20-year-old, who has registered with a job centre while she seeks new employment.
The rising cost of energy in the wake of Russia's invasion of Ukraine pushed inflation in Germany to a peak of 10.4 per cent in October 2022 -- a level not seen in decades.
It is one reason why Schumachers pawnshop in Duisburg has seen "at least 25 per cent more clients" than usual, says manager Michael Meiering. Meiering says he can already imagine the size of queue that will form by the door when locals get their "annual electricity and heating bills" from the municipality.
From five euros
When in need, clients are "ready to swear off their game consoles for a while to fill the fridge", Meiering says, showing the way to the back of the shop.
The store room is filled with items traded in for money: mobile phones, electrical devices, televisions, guitars and more. Expensive jewellery and watches are kept in a separate room under lock and key.
The pawnshop in Duisburg is one of seven in the Schumachers family group, founded in 1873, making it the oldest private pawnbroker in Germany.
The business model has changed little. Clients come to the shop -- usually towards the end of the month -- to get quick cash without too many questions asked.
All you need is an ID card and, in the case of particularly valuable items, proof of authenticity.
"The loans start at five euros and can go well beyond 10,000 euros," Meiering says.
