Stores Resurrect Layaways In Tough Economy

[OhioChick]

Depression-Era Option Still Available At Some Stores

POSTED: 5:25 am EDT October 22, 2008
UPDATED: 5:51 am EDT October 22, 2008

A payment method that became decidedly passe in the 1980s is being promoted again this holiday season as a way for budget-conscious shoppers to buy gifts without breaking the bank.

Layaway -- the practice that allows people to pay for everything from tools to televisions bit by bit before taking their items home -- is back in advertisements for the first time in years for discount chain Kmart.

In a national campaign launched last week, the ads proclaim "beat the rush and pay the easy way with Kmart layaway." They mark the first time many shoppers have even heard the phrase, even though the chain has offered the option for decades.

"In the backdrop of this economy, it all of a sudden has a great deal of relevance," said Tom Aiello, a spokesman for the Hoffman Estates-based subsidiary of Sears Holdings Corp.

Discounter Burlington Coat Factory Warehouse Corp. -- one of the few remaining national chains offering the option -- saw its percentage of layaway sales grow from 4.6 percent in August to 5.3 percent last month.

More: http://www.newsnet5.com/money/17776273/detail.html

[Selatius]

1. The simple fact is people can't take out equity from their homes anymore to sustain buying habits.

The equity is gone. Their 401ks are flaming wrecks. They have maxed out their credit cards. Their wages do not keep up with inflation, and their employers do not want to give them pay increases, especially since employees stopped joining labor unions anymore. The government has cut social services to these people for the last 30 years.

In the last thirty years, only one Democrat sat in the White House. Everyone else has been a Republican. The only thing people are looking forward to is a visit from the repo man or the bank come to evict them out of their foreclosed homes.

[nadinbrzezinski]

4. You mean I am weird?

We pay for all our toys in cash... so what if　Ｉ　ｈａｖｅ　ｔｏ　ＳＡＶＥ？

Ｉ　ｋｎｏｗ　ｗｅ　ａｒｅ　ｒａｒｅ

[Selatius]

7. The sad thing is, you used to be the norm, but somewhere along the way it changed.

And the market, whenever it breaks loose, has a nasty way of returning people back to sustainable habits forcefully. It should not have come to that, but it is rapidly approaching that situation if it isn't already here.

[nadinbrzezinski]

8. I know... I learned that from my dad and mom

it is so bad (not really) that we wait for even years to replace big ticket items

I remember telling Navy Wives, TRY to live on what your husband made on his previous rank, and save the difference...

Pay yourself first at the beginning of the month... things like that

They used to look at me like what you are nuts!!!!!! I need a new (insert baubble here) NOW

Hell, when our AAR affiliate went away I considered for months whether to get the IPOD... I did, after I got some B'Day gifts.

[OmmmSweetOmmm]

2. KMart ran an ad here a few days ago advertising layaway.

[SoCalDem]

3. I saw it too... and it was odd because just that day on DU

some of us were reminiscing about good ole layaway from the olden days:)
Layaway was great for hiding Xmas toys from snoopy kids too :)

[ColbertWatcher]

10. Yes! What's so wrong with layaways anyway!? n/t

[liberal N proud]

5. I bet Wal-Mart is kicking themselves

They just ended Layaway a couple of years ago

[Missy Vixen]

6. Ten bucks says Target

rolls out layaway the week before Thanksgiving...

Julie

[Canuckistanian]

9. I remember that. The local Woolworth's used to do it.

I still remember the big sign, "Ask us about our layaway plan".

We never used it in our family.

[pitohui]

11. don't do layaways and here is why!!!

the problem with layaway is that they have some/all of your money before you get the item

i think it was after 911 when a toy store in our area took lots of layaways and went out of business on dec. 26, of course, the kids opened the box on dec. 25 and discovered that many of the boxes were empty or had broken items! but the parents were fucked because when they went to do the exchange on dec. 26 the chain was no more

if you can't take the item home and see if it's OK before xmas just don't buy it at all

there will be LOTS of stores closing on dec. 26 this year, for certain, several if not all circuit cities, some macy's, there was a long list published -- and that's just the stores we KNOW will be closing

better to put money aside in your own piggy bank until you can pay for the item and take it away, things get "switched" or "changed" in layaway when a store is about to close

[proud patriot]

12. I'm buying the oui on layaway

:hi:

[MonteLukast]

13. Layaway was good when I bought a dress...

... from a small boutique in my college town, opened by a fashion design grad right after she got her degree. It somehow felt... better knowing it wasn't going on a credit card. She didn't even charge me interest, and I had my cute, unique dress in four months.

Layaway might benefit mom-and-pop stores the most. Something else to think about.