Layaway

Photo courtesy: TheTruthAbout via Flickr

I saw a commercial last night for the return of Layaway at Wal-Mart.  My Hallmark store has always offered layaway, especially during ornament season, but we've seen a definite increase in the number of customers utilizing this service this year.  So I thought it was interesting when I saw a Big Retail Store returning to this service as well.  It truly is a sign of the times and the struggling retail industry.  No one really wants to use their credit card, or they have already used it to the max, but they want to provide a decent holiday for their families.  So layaway provides a reasonable alternative.

Our Layaway sales haven't just been for ornaments either, which is surprising to me.  On November 6th, we will have Jim Shore for an in-store signing event and customers are already making their purchases.  We've had people layaway pillow pets, jewelry items, and other holiday gifts.  Our selling point, particularly for the ornaments, has been that we'll store all your holiday stuff for you while you make layaway payments.  (We don't have a strict schedule, you just have to pick it up by December 1st.)  It makes it easier to hide gifts from family members.

I remember when I was younger, my dad seemed to always have a layaway at the local K-Mart.  We even had school clothes on layaway one year.  I can understand why Credit Cards became the popular form of buy now, pay later though.  With a card, one could take the purchased items home right away whereas layaway requires a little more patience.  But a major benefit of layaway was the lack of interest rate and the ability to pay for an item in full before receiving it for use and destruction.  How many people have holiday debt they continue to carry from year to year for items that have long since been donated or thrown out?  Also, if one was unable to pay for the layaway in full there was a minor penalty at the store but one was able to get back most of the money that was paid.

I'm glad to see this make a comeback.  Overall, I think it will be a healthier option for our holiday over indulgences.  Of course, we need to pare back our spending habits overall -  I speak from the heart on this one, having made many of my own poor choices, financially speaking - but this will at least alleviate that credit card burden so many are carrying around.  It provides the ability to purchase things one can legitimately afford.  I think it will also cause many people to really consider their purchases if they don't have the immediate gratification a credit card provides.


Layaway Making A Comeback - MSNBC Article
"Retailers to Revive Layaway to Entice Budget Conscious Shoppers" - Fox Business Article