I've noticed more and more companies are returning to the option of layaway. Personally, I have never used it, but when I sold jewelry, many customers did. I see the appeal for things like jewelry because the store isn't taking the risk and the items are small. Thus storage is not an issue.
There was a Sears commercial on that said you can layaway anything. The last thing I bought at Sears was a king-size bed. So how does it work? Do they really physically keep the item until I pay it off? In my case, I would probably decide to cancel and pay the $10 fee.
The only person I've known to use it, used it more like a bank account. LOL. They would put something on layaway and then go in 2 weeks later and change their mind to get the cash.
The debate: Is layaway a good idea from both the businesses' side and the customers' side? Or do people start to realize they can live without what they wanted? Is it just to get more business from people who can't get credit but can't save up money on their own?
I think many use it for Christmas gifts which is why they offer it at this time of year. I have done it before more for storage purposes when I had big gifts like bikes or something like that that I didn't want to try to hide. I also think some people may want to avoid putting things on credit cards but don't want to wait because all the popular things may run out.
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Granddaughters Kylie 10/18/2010 & Aleya 4/22/2013
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The store is going to designate an area of their warehouse for these items.
It is a smart move for them. People will spend more, because the idea of $100 a week for 10 weeks is alot easier to swallow than a one time purchase of $1000 in the consumers mind.
With the resurgance of couponing and the push away from the stereotype of what couponing used to represent in the consumer's mind, I think the retailers are feeling that this change in perception might be applied to layaway and may welcome it as mainstream.
Toy sales mid year are a big thing here and they use lay buy until Christmas which is a great way for parents to keep those gifts hidden away. Most have a pick up Christmas eve option and generally do an extra late night of trading for parents to do the pick up about 2 days before (we have a whole granny flat downstairs which is lockable so that will be the gift hiding spot)
Not sure if it will have a huge surge of popularity, I know a lot of people who when they want something they want it now so just use credit.
I use layaway every single year for Christmas and have for about four years now. I would go to K-Mart around September or October, stockpile about two carts full of toys and whatever my kids had asked for for Christmas, and pay a little every two weeks. I believe when you spend over $400 they actually give you 12 weeks instead of 8 to pay it off. I do this because I have five children (two step and three of my own) and another on the way... plus my DS's b-day is in October and DD's b-day is in December. It's just too much to try and worry about it all at one time, or to try and buy toys here and there, especially when I have the kids with me all of the time. I've actually only ever used their layaway once when it wasn't Christmas time, and that was to buy my sons' bunk bed. Personally I never have two or three hundred dollars laying around to go and get large things that I might need, so in this instance I like having the option of layaway to get something that I need and be able to pay on it over time. I've never once not paid off and picked up my layaway items. When I heard that Walmart was doing this for the holiday season, I went down and did one there, too... there were some things that I forgot with the K-Mart one lol... blame the pregnancy brain! I think it's a wonderful thing for stores to offer, and I wish more of them would. I don't see a down side for them, they don't lose anything if you don't pay off the layaway. It's a wonderful option for families who don't have a lot of extra money... it takes the pressure off of the holiday season... at least for me.
Krystal & Donovan - 12/2/06
Reagan - 10/2/02
Maximus - 3/10/05
Liberty - 12/11/08
My angel in Heaven 1/7/13