I've been curious as to the distribution of store locations, and how that might bode for future growth, and how poor economic conditions in an area might affect AACE. This list is complied from the "Find a Store" locator on the ACE Cash express website. toward the end of my count, I noticed duplication of some adresses, so this should not be viewed as a precise count. Here goes Alabama 4; Arkansas 10; Arizona 84; California 39; Colorado 57; Conneticut 2; Washington DC 17; Delaware 1; Florida 104; Georgia 61; idaho 1; Indiana 30; Kansas 5; Kentucky 4; Louisiana 40; Maryland 45; Maine 1; Michigan 1; Minnesota 2; Mississippi 1; Missouri 12; North Carolina 26; New Jersey 1; New Mexico 10; Nevada 13; Ohio 35; Oklahoma 22; Oregon 12; Pennsylvania 9; South Carolina 25; Tennessee 27; Texas 391 (Houston 95, Dallas 50, not including suburbs); Wyoming 1; Washington 15; Virginia 25; Utah 5. Total 1138 stores Texas represents about 34.5% of stores; room for expansion exists in states which already have ACE stores, Especially California, Georgia, Florida and others. New Jersey, New York, Pennsylvania and the entire North East looks like an expansion opportunity. Stores do appear to be concentrated in the larger urban areasAny thoughts?Danbobtx
You must locate in densely populated areas if you even want to think of making money in this business. Take a look at their avg revenues per store they are not very high. The market is really only the twenty percent of adults who do not have banking relationships (the unbanked). You must also remember that operating costs are not very high either, that is the beauty of this business.
I agree that the store locations should be in areas with a high target population. In looking at the count however, a few things emerged:San Antonio has significantly fewer stores per capita than does the Houston Texas area; assuming Houston can support the number of stores it does, shouldn't San Antonio (baring a strong competitor)? This represents one growth area; Some areas (Tyler, Amarillo, Whicita Falls, and far south Texas) seem to be very poorly penetrated; again, room for growth. In short, ACE has achieved high penetration in some urban markets, but not in many, and has many markets without repesentation. Further, ACE would be serverly impacted by an economic downturn in Texas, and some regions, but not in others.
Your comment about competition is the key here. I know of at least one area of the DFW area where a grocer can offer a much better deal on check cashing, and a pawn shop is offering payday loans in the same shopping center. Where these items are in place, a seemingly excellent location loses it attraction very quickly
Remember, when you use the "find a location" on the web-site, it also includes "franchise" stores that are NOT company owned. The franchise sector is still wide open.As far as New England and the northeast, I believe there is some concerns with local legislation and licensing governing "check cashing".Not every state is the same, so not all states are equal.
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